Westwater Resources, Inc. (NYSE: American: WWR), an energy technology and battery-grade natural graphite company (“Westwater Resources” or “Westwater”), today announced the execution of its first off-take agreement with SK On Co., Ltd. (“SK On” and such agreement, the “Off-Take Agreement”), a leading electric vehicle (“EV”) battery manufacturer, supplying electric vehicle batteries to Ford, Hyundai, Volkswagen and others.
Pursuant to the terms of the Off-Take Agreement, Westwater will supply CSPG-10 natural graphite anode products (the “Product”) from its Kellyton Graphite Plant located near Kellyton, Alabama to SK On battery plants located within the U.S. Under the terms of the Procurement Agreement, SK On will be obligated to purchase, on an annual basis, a quantity of Product equal to a percentage of the forecasted volume required by SK On (the “Minimum Purchase Amount”), provided that the Minimum Purchase Amount may be increased from time to time by the mutual agreement of the parties. The forecasted volume required by SK On in the final year of the Off-Take Agreement is 10,000 mt of Product.
“The contract with SK On is another important step in advancing Westwater’s graphite business. We are excited to partner with a leading global manufacturer of EV batteries and assist SK On to further establish its U.S.-based supply chain. This agreement is also a critically important step to securing the additional financing needed to complete construction of Phase I of our Kellyton Graphite Plant,” said Terence Cryan, Westwater’s Executive Chairman.
Frank Bakker, Westwater’s President & CEO, added, “This is the first off-take agreement for Westwater, and the Company is actively negotiating additional off-take agreements with other customers. We believe the contract with SK On is also the first agreement for the supply of CSPG between a South Korean EV battery manufacturer and a U.S. natural purified graphite producer. Our technical and commercial teams have worked very hard to complete the necessary steps to achieve this important milestone. We believe that Westwater is well positioned as one of the first U.S.-based suppliers of natural purified graphite for companies seeking an IRA-compliant source by 2025.”
