Graphite processing plant coming to Kellyton industrial park
PROTECTED CONTENT
If you’re a current subscriber, log in below. If you would like to subscribe, please click the subscribe tab above.
Username and Password Help
Please enter your email and we will send your username and password to you.
Graphite processing plant coming to Kellyton industrial park
Advanced processing plant will be first of its kind
By Christa Jennings
A “first-of-its-kind advanced graphite processing plant” will be coming to Coosa County, with the plant being built in the Lake Martin Regional Industrial Park in Kellyton.
After many meetings and hushed conversations because of confidentiality, including meetings with the Coosa County Commission and the Kellyton Town Council, the announcement was finally publicly made on Tuesday. There was no shortage of officials present for the long-awaited announcement after so much discussing and planning coming to fruition.
All five county commissioners were present for Tuesday’s announcement. Other elected officials representing Coosa County who were present for the event included Sen. Clyde Chambliss, Rep. Ed Oliver and Rep. Ben Robbins, with the event including the announcement in Kellyton and a ceremony in the Old House Chamber at the State Capitol in Montgomery.
During Tuesday’s event, the Lake Martin Area Economic Development Alliance, or LMAEDA, Coosa County and the City of Alexander City announced the location of Alabama Graphite Products LLC.
Alabama Graphite Products is a subsidiary of Alabama Graphite Corp. and its parent company, Westwater Resources Inc. Westwater is a Colorado-based mineral resources company “committed to exploring and developing materials for clean sustainable energy production,” and representatives with the company, as well as LMAEDA, have previously met with the county and also the Town of Kellyton.
The entities were pleased to announce that Alabama Graphite Products will build a “first-of its-kind advanced graphite processing plant,” which will be done utilizing 80 acres of the industrial park located along U.S. Highway 280 in Kellyton.
Per the announcement, Alabama Graphite plans to invest $124 million in constructing and equipping the graphite processing facility.
Westwater said its Alabama Graphite Products subsidiary plans to make an initial investment of $80 million or more to build the graphite processing plant in Kellyton, near Alexander City. A second phase of the project will then push the total investment to $124 million.
Construction is expected to begin later this year, with the plant anticipated to be in operation by the end of 2022.
The facility is expected to employ at least 100 fulltime permanent workers with hourly wages averaging $21.15.
On Tuesday, Gov. Ivey also signed an incentives agreement in a signing ceremony held in Montgomery. For that separate event, Ivey was joined by state officials, LMAEDA Executive Director Chad Odom, Coosa County Commission Vice Chair Bertha K. McElrath, and Alexander City Mayor Woody Baird in welcoming the industry to Alabama.
“We are excited to welcome Alabama Graphite Products to our county and look forward to a long-term partnership ensuring their success,” Commission Vice Chair McElrath said in a statement. “This announcement is not only a great opportunity for job expansion in our area, but with wages averaging $21.15 per hour it also provides a much-needed boost to area workers.”
Alexander City Mayor Baird echoed McElrath’s statement, saying, “Alex City and Coosa County have worked tirelessly to bring this first-of-its-kind facility to fruition. The potential growth of this industry is immeasurable and provides great hope for the future of our area.”
As is standard in these instances, incentives were offered to help entice the company to choose the industrial park as its building site for this processing plant.
The agreement signed by Gov. Ivey provides Alabama Graphite Products with jobs and tax credits under the Alabama Jobs Act, totaling an estimated $29.9 million over the course of 15 years. Additionally, AIDT, known as the state’s primary workforce development agency, is providing Alabama Graphite Products with $925,000 in job training and employee recruitment incentives.
Local incentives for the project are estimated to total approximately $4.7 million and include tax abatements and the use of the 80 acres at the industrial park at no cost. Additionally, a bridge will be built to provide additional access to the industrial park.
Also as part of this project, water and wastewater treatment will be provided by Alexander City. To help support this effort, Alabama Graphite Products has entered into a public-private partnership to upgrade Alexander City’s wastewater treatment system with a contribution of $400,000 and prepayment of $100,000 in treatment fees.
During Tuesday’s announcement it was also reported that graphite is a key component in lithium-ion batteries, as well as a conductivity enhancer for all types of batteries, including the common lead-acid batteries in traditional vehicles.
Westwater President and CEO Chris Jones noted that the U.S. government has declared graphite critical to the nation’s economy and national security.
“All of the graphite used and needed in the United States, including by America’s auto industry, is imported,” Jones said. “Most of it is from China, where media have reported both worker and environmental issues. Domestic production of graphite reduces our dependence on foreign sources. Even though the raw graphite we will process into battery-grade material will be imported initially, none of it will be from China. We have secured agreements from other providers.”
In addition to making Alabama home to the first large-scale producer of refined graphite in the nation, Alabama Graphite plans to mine raw graphite in western Coosa County in part of what was known as the “Alabama Graphite Belt.”
Westwater Resources acquired mineral rights to 42,000 graphite-deposit-rich acres in 2018 and expects to begin mining operations by 2028.
Per the announcement, Alabama Graphite will use a proprietary process to purify the raw graphite and refine it into battery-grade purity. That process is reportedly safer, as well as more environmentally friendly and sustainable, than the hydrofluoric acid-based process commonly used in China and elsewhere that uses more water and produces more environment-damaging byproducts.
“One of our core values is safety. We’re protective of our workers, the community and the environment,” Westwater President and CEO Jones said. “Whether it’s mining or processing graphite, our company is committed to doing it in an environmentally safe, sustainable manner. The biggest virtue of electric vehicles and other battery-powered products is they reduce carbon emissions and are better for the environment. Producing the key materials for those batteries, we believe, can and should be done in an environmentally responsible way, as well.”
According to the announcement, Alabama Graphite’s processing plant will produce approximately 7,500 tons of battery-grade graphite a year initially, eventually expanding to 15,000.
The battery in an average electric vehicle, or EV, needs about 175-200 pounds of graphite. Ford’s new electric F-150 truck, the Lightning, is expected to need roughly 450 pounds of graphite.
“This is a great project for Alabama for many reasons,” Commerce Secretary Greg Canfield said in a statement. “It complements perfectly our auto industry and what these automakers are doing with EVs here in Alabama. Mercedes and Hyundai have announced major expansion projects specifically for the manufacturing of electric vehicles. Plus, these are well-paying, sustainable jobs that will spur additional economic development and even more jobs in the area.”
LMAEDA Executive Director Odom said in a statement Tuesday, “This announcement represents an opportunity for the Lake Martin area to grow in meaningful ways. The impact of an industrial project that changes wage dynamics, supports expansion of critical infrastructure and gives a foothold into next generation technology sectors is hard to properly quantify. We get the tangible benefit of expanding Alexander City services in a substantial manner that are paid for by a single user. The Coosa road and bridge commitment along with the wastewater run also open up the Lake Martin Regional Industrial Park to aggressively market 200 acres that previously were unmarketable as an industrial site. This industrial expansion will provide decades of growth in commercial, industrial and residential development along the 280 corridor that otherwise would not have been possible. The benefits of this will be seen directly by Coosa and Tallapoosa County [sic] along with the Town of Kellyton and the City of Alexander City. The indirect benefits will lift all boats for our other municipalities in the Lake Martin area by positively affecting the wage dynamics for our workforce.”
Odom continued in the statement, “A huge selling point from the onset of courting this prospect was the dynamic workforce training offered by Central Alabama Community College. President Lynn was hands on in partnering with us to pitch these capabilities with our first impression to C- level leadership. This put us in the pole position, and we went wire to wire for the win. They say first impressions are invaluable, and without the partnership of CACC I’m not sure we would have succeeded.”
Gov. Ivey said during her announcement in Montgomery Tuesday, “This plant not only will make Alabama the U.S. leader in graphite production, the go-to place for this important resource in battery manufacturing, it also will elevate our standing even more as a major player in the fast-growing electric vehicle sector. We’re home to four major auto plants, and the ability to source precious materials in state for the lithium-ion batteries used in electric and hybrid vehicles will be a big plus in attracting other manufacturing jobs to the state.”
Odom also stated, “This is a team sport, and without the leadership of the Coosa County Commission and the Alexander City Mayor and Council and their staff this would not be possible. It takes vision, sacrifice and audacity to grow, and these leaders, while asking the hard prudent questions, took the steps to make this happen with purpose and focus on what the long-term benefits will be to their constituents. I applaud the whole team for getting this across the finish line. This is a huge announcement.”
Westwater President and CEO Jones stated Tuesday, “I want to thank Gov. Ivey, Secretary Canfield, other state leaders, and the many local officials in Alexander City and Coosa County who worked with us to make this vision come true. The people of Alabama have been very welcoming since day one, and their cooperation has been integral in putting together the many pieces needed for us to build this innovative plant in Alabama. We look forward to being an active member of the business community here for many years to come.”
Numerous representatives with various entities and elected officials, including all five county commissioners and Rep. Ben Robbins, stand at the future site of Alabama Graphite Products in Kellyton. Photo submitted
County commissioners Ronnie Joiner, Unzell Kelley, Lamar Daugherty, and Randall Dunham, along with Commission Vice Chair Bertha K. McElrath and company representatives, stand in the industrial park in Kellyton at the future site of Alabama Graphite Products. Photo submitted
County Commission Vice Chair Bertha K. McElrath speaks during the announcement and signing ceremony at the State Capitol in Montgomery. Photo submitted
Elected officials, industry representatives and others attend the signing ceremony and announcement in Montgomery. Photo submitted
Gov. Kay Ivey makes the announcement of Alabama Graphite Products plans to locate in Coosa County during a ceremony in the Old House Chamber at the State Capitol in Montgomery. Photo submitted