CENTENNIAL, Colo.--(BUSINESS WIRE)--Westwater Resources, Inc. (NYSE American: WWR), an energy technology and battery-grade natural graphite development company (“Westwater” or “the Company”), today applauds the historic legislation entitled the Inflation Reduction Act (“IRA”) signed into law by President Biden on August 16, 2022. This legislation includes an investment of $369 billion in climate programs that should directly and indirectly benefit Westwater.
Terence Cryan, Executive Chairman of Westwater commented, “Our Company is uniquely positioned to benefit from this legislation. The legislation provides direct benefits in the form of a Production Tax Credit for future production of advanced anode material from our Kellyton Graphite Plant. In addition, the legislation should increase demand for domestically produced graphite and vanadium, both of which are contained in our Coosa Graphite Deposit -- The IRA is good news for Westwater.”
The key provision directly benefiting Westwater is the Production Tax Credit for Critical Minerals. The IRA provides a 10% tax credit for the costs of producing certain critical minerals, including graphite and vanadium. This credit is eligible for direct pay and is also transferable to unrelated taxpayers. Battery-grade graphite produced at the Kellyton Graphite Plant should be eligible for this tax credit.
The key provision indirectly benefiting Westwater is the Clean Vehicle Credit. The IRA eliminates the limitation on the number of electric vehicles a manufacturer can sell before the credit is phased out or eliminated. The IRA sets a minimum threshold for the percentage of the value of applicable critical minerals contained in the battery of the electric vehicles. This provision should indirectly benefit Westwater by increasing demand for domestically produced graphite and vanadium.
About Westwater Resources, Inc.
Westwater Resources, Inc. (NYSE American: WWR), an energy technology company, is focused on developing battery-grade natural graphite. The Company’s primary project is the Kellyton graphite processing plant that is under construction in east-central Alabama. In addition, the Company’s Coosa graphite deposit is the most advanced natural flake graphite deposit in the contiguous United States — and located across 41,900 acres (~17,000 hectares) in Coosa County, Alabama. For more information, visit www.westwaterresources.net.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "estimates," "projects," "anticipates," "believes," "could," “scheduled,” “targets” and other similar words. Forward looking statements include, among other things, statements concerning the construction and operation of the Company’s Kellyton graphite processing facility, the Company’s Coosa graphite deposit, and the costs and schedules associated with them. The Company cautions that there are certain factors that could cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of the Company; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Westwater’s Annual Report on Form 10-K for the year ended December 31, 2021, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: (a) the spot price and long‑term contract price of graphite (both flake graphite feedstock and purified graphite products) and vanadium, and the world-wide supply and demand of graphite and vanadium; (b) the effects, extent and timing of the entry of additional competition in the markets in which we operate; (c) the ability to obtain contracts with customers; (d) available sources and transportation of graphite feedstock; (e) the ability to control costs and avoid cost and schedule overruns during the development, construction and operation of the Kellyton graphite processing facility; (f) the ability to construct and operate the Kellyton graphite processing plant in accordance with the requirements of permits and licenses and the availability of and requirements for tax credits and other incentives; (g) effects of inflation; (h) the availability and supply of equipment and materials needed to construct the Kellyton graphite processing facility; (i) stock price volatility; (J) existing and new government regulation of the mining and manufacturing industries in the United States; (k) unanticipated geological, processing, regulatory and legal or other problems we may encounter; (L) the results of our exploration activities at the Coosa graphite deposit, and the possibility that future exploration results may be materially less promising than initial exploration results; (m) any graphite or vanadium discoveries at the Coosa graphite deposit not being in high enough concentration to make it economic to extract the metals; (n) our ability to finance growth plans; (l) the potential effects of the continued COVID-19 pandemic; (o) currently pending or new litigation or arbitration; and (p) our ability to maintain and timely receive mining, manufacturing, and other permits from regulatory agencies.