Westwater advances construction at Kellyton Graphite Plant, progresses debt financing
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 you a password reset link.

A photo from February shows progress during Phase I of the Kellyton Graphite Plant construction, with the completion of structural steel and dust collectors, as well as installation of piping and controls being underway.
Special to the News
Yesterday Westwater Resources Inc., an energy technology and critical minerals company focused on developing battery-grade natural graphite, announced business results for the second quarter ended June 30.
“Westwater continues to make steady progress on all fronts – from construction at Kellyton to advancing multiple financing pathways,” said Terence Cryan, executive chair of Westwater Resources. “We remain confident in the strength of our project, the commitment of our team and the continued support from both public and private partners. As one of the most advanced natural graphite projects in the United States, Westwater is well positioned to play a leading role in strengthening the domestic battery supply chain.”
2025 Second Quarter Business Highlights:
-
Kellyton Phase I construction progresses: approximately $124 million incurred to date out of the $245 million total expected cost; 85% of equipment received and key work streams advanced, including grid power connection, and installation, commissioning and startup of the first micronizing and spheroidizing mills.
-
Operated and enhanced qualification line at Kellyton: now used to produce samples over 1 metric ton (“mt”) of coated spherical purified graphite (“CSPG”) for customer cell trials; improved cycle times and flow rates of the line; and continues to provide hands-on experience to operations team.
-
Financing progressing via multiple paths: $150 million debt facility syndication process continuing, with interested lenders moving through their diligence and underwriting process; Export-Import Bank of the United States (“EXIM”) letter of interest received; Westwater subsequently submitted its loan application and EXIM commenced due diligence post quarter close.
-
Improved liquidity: Current cash on hand as of August 11, 2025, of approximately $12.5 million. Quarter end cash on hand of $6.7 million as of June 30, 2025, which includes proceeds of $5 million from convertible note issuance during the quarter; post quarter there was an additional $5 million convertible note issuance.
Kellyton Graphite Plant
Phase I construction of the Kellyton Graphite Plant continued during the quarter. The total expected cost remains unchanged at $245 million. As of June 30, the company has incurred approximately $124 million in project-related costs since inception, inclusive of liabilities.
During the second quarter, Westwater advanced critical infrastructure, including:
-
Successful transition from generator power to the Alabama Power grid;
-
Continued installation of electrical systems and power distribution components;
-
Installation of all micronization and spheroidization mills in the shaping and grading buildings; commissioning and successful operation of the first two units; and
-
Ongoing installation of peripheral support equipment.
To date, approximately 85% of Phase I equipment has been received. Westwater will provide an update on the construction timeline once funding is secured.
Also during the quarter and first half of the year, Westwater operated the qualification line at the Kellyton Graphite Plant, producing CSPG samples in excess of 1mt for customer pre-production cell trials and testing.
In the second quarter, the company implemented enhancements to improve cycle times and graphite flow rates, further optimizing the line’s performance. The qualification line enables Westwater to supply customers with bulk samples in excess of 1mt for cell qualification activities while Phase I construction progresses.
The qualification line also serves as a training platform for the operations team, positioning the company to expedite commissioning and startup once the plant is complete.
“We are making steady, tangible progress at Kellyton, both in construction and in preparing for operations,” said Frank Bakker, president and chief executive officer of Westwater Resources. “With 85% of Phase 1 equipment on site and key systems installed, our team is gaining valuable hands-on experience operating the qualification line and commissioning the first commercial micronizing and shaping systems. The work we’re doing today – from delivering CSPG samples to fine-tuning our processes – is building the expertise and operational readiness that will allow us to hit the ground running when we reach full-scale production.”
Debt Financing Update
Westwater is actively working on the syndication of a $150 million secured debt facility to fund the remaining construction of Phase I at the Kellyton Graphite Processing Plant. The company is progressing through each of the lenders various due diligence and approval processes.
In the second quarter of 2025, Westwater made notable progress on several fronts, including advancing loan documentation, completing updated third-party technical due diligence, hosting site visits, and continuing efforts to secure a non-Chinese backup feedstock supplier.
In the second quarter, Westwater received a letter of interest from EXIM as a potential complementary funding source to its debt syndication. Following this, the company deepened its engagement with EXIM, and after quarter-end, formally submitted its loan application – initiating EXIM’s due diligence process. As with all EXIM financing, the loan remains subject to due diligence, underwriting, and final approval.
While macro-level developments such as global tariff announcements, changes in government incentives and broader capital market volatility continue to impact the timing of syndication, Westwater remains committed to completing the Phase I financing and will continue the dual path of a debt syndication and EXIM process.
“We are making steady progress across both financing tracks, and the level of engagement from our lending partners gives us confidence in completing the Phase I funding,” said Steve Cates, chief financial officer of Westwater Resources. “We believe advancing both financing tracks provides optionality, flexibility and redundancy as we work toward a solution that supports project completion and long-term growth at the lowest cost of capital available to us.”
Westwater remains focused on delivering the capital required to complete construction and will continue to keep investors informed as progress continues.
Convertible Note Issuance
In June and August, the company secured a total of $10 million through two registered public offerings of convertible notes with the same institutional investor. Both notes carry a 115% redemption premium, mature in mid-2027 and offer flexibility through monthly installment payments in cash or stock at the company’s option.
Conversion terms are set at the lower of a fixed price ($0.63 or $0.83 per share, respectively) or 92% of the lowest VWAP over the five days prior to each installment.
Executed under Westwater’s effective shelf registration, the financings include customary covenants – such as a $2.25 million minimum cash balance and a 9.99% ownership cap – and position the company to maintain momentum at the Kellyton Graphite Plant while advancing complementary funding to complete Phase I.
This added financial flexibility supports a measured construction pace and bolsters Westwater’s ability to deliver on its strategic growth plans.

As of July, the installation and testing of milling and shaping equipment continues at the Kellyton Graphite Plant.

