Westwater Resources announces major graphite sales agreement with Fiat Chrysler
London, UK
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July 18, 2024 01:26 PM Eastern Daylight Time
Westwater Resources Inc (NYSE-A:WWR) has announced a significant sales agreement with Fiat Chrysler Automobiles, part of the Stellantis group of companies. This new contract is a crucial step for Westwater Resources in securing debt financing as it represents a major offtake agreement.
Steve Cates, senior vice president and CFO, joined Proactive's Stephen Gunnion with details of the partnership with Fiat Chrysler, a company committed to the energy transition.
The contract involves supplying natural graphite anode material from Westwater's Kellyton graphite plant, covering the balance of the Phase 1 production. This agreement, combined with a previously announced contract with Korea's SK On, ensures that the company’s plant capacity is fully contracted.
Cates highlighted the importance of this agreement in the context of the graphite market, which has been dominated by China for decades. Having 100% committed volumes under contract is beneficial for lenders as it reduces the risk compared to uncommitted capacity sold on the spot market.
Fiat Chrysler will begin receiving supplies in 2026. In the meantime, Westwater Resources will focus on securing financing, selecting a lender, and continuing with the construction of Phase 1. The company is also looking ahead to Phase 2, with partial volumes already under contract and ongoing efforts to engage additional customers.
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