A Colorado company has completed its purchase of a Canadian company that owns a graphite project in Alabama.
Westwater Resources Inc. (Nasdaq: WWR) of Centennial said it’s completed its purchase of Alabama Graphite Corp. in an all-stock deal.
Westwater is betting big on graphite: According to the company, there’s currently no domestic production of natural graphite. Westwater said it plans to produce advanced battery materials on a pilot scale during 2019.
Graphite is used in the production of lithium-ion batteries (graphite is used to manufacture the anode in a lithium-ion battery). Alabama Graphite has the mineral rights in the Coosa graphite project near Sylacauga, Alabama, about 50 miles southeast of Birmingham.
"This is a transformational event for Westwater Resources. Our expansion into the battery-ready graphite industry takes full advantage of the rapid growth in energy storage markets and the materials they require," said CEO Chris Jones, in a statement. The deal was originally announced in December.
With the acquisition, Westwater is changing its focus. The company used to be known as Uranium Resources Inc. but changed its name in August after it said it wanted to also concentrate on the lithium market.
It now operates in the lithium, graphite and uranium markets; "mineral resources that are materials essential to clean energy production," according to the company.
The Birmingham Business Journal, a sister publication of the DBJ, explained Alabama Graphite’s Coosa project in 2016.
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