Westwater Resources, Inc. has secured approval from the Export-Import Bank of the United States (EXIM) for a $25 million direct loan to support the continued development of its Kellyton Graphite Plant in central Alabama. The financing marks an important step in Westwater’s efforts to establish a domestic supply chain for battery-grade natural graphite, a critical material used in lithium-ion batteries and other advanced technologies.
The loan was approved under EXIM’s Make More in America Initiative (MMIA), which is designed to support export-oriented domestic manufacturing projects that strengthen critical U.S. supply chains. J.P. Morgan’s Securitized Products Group acted as the Arranger and Structuring Agent for the financing.
Westwater said the non-dilutive funding will be used for construction, equipment installation, commissioning and operational readiness activities at the Kellyton facility. The company remains focused on beginning commercial production in 2027.
According to Westwater Executive Chairman Terence Cryan, the financing represents a major milestone for the project and reinforces federal support for developing a secure U.S. supply chain for battery-grade natural graphite. The company considers Kellyton the most advanced American battery-grade natural graphite processing project and estimates it has a three- to five-year first-mover advantage over potential North American competitors.
The United States currently depends heavily on foreign sources for natural graphite, which is classified as a critical mineral. Graphite is primarily used as an active anode material in lithium-ion batteries, while also serving applications in energy storage, defense, aerospace and advanced technologies.
Once operational, Kellyton is expected to manufacture coated spherical purified graphite (CSPG), a processed form of natural graphite primarily used in lithium-ion battery anodes. Phase I of the plant is designed to produce approximately 12,500 metric tons of CSPG annually.
The facility’s location in Alabama provides proximity to the expanding battery and automotive manufacturing base in the southeastern United States. Kellyton forms the downstream processing component of Westwater’s vertically integrated mine-to-market strategy.
Westwater is also advancing its Coosa Graphite Deposit, located about 30 miles from Kellyton, as a potential long-term domestic source of natural graphite flake concentrate. The company holds mineral rights covering approximately 41,965 acres at Coosa.
Phase I of Kellyton is expected to create about 100 permanent jobs in rural central Alabama and support the state’s advanced manufacturing sector.
EXIM Chairman John Jovanovic said critical mineral security is closely linked to national security and highlighted the importance of strengthening domestic supply chains. However, the $25 million loan remains subject to definitive documentation and customary closing conditions.
Impact on Products and ChemAnalyst-Tracked Chemical Commodities
The EXIM-backed financing strengthens Westwater’s ability to advance Kellyton toward its targeted 2027 commercial production, potentially increasing U.S. availability of battery-grade graphite and coated spherical purified graphite (CSPG). In the short term, construction and equipment demand could support consumption of industrial materials, specialty chemicals and energy inputs. Over the medium term, domestic graphite processing could reduce U.S. dependence on imported graphite and improve supply security for lithium-ion battery manufacturers. Greater domestic CSPG availability may moderate import-driven cost pressures and create a more competitive U.S. market. Prices for graphite-related battery materials could face downward pressure as domestic supply expands, although actual effects will depend on production ramp-up, demand growth and global market conditions.
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