Initial Ruling Finds Chinese Producers are Receiving Unfair Government Subsidies
U.S. - Imposed Tariffs Should Benefit Domestic Anode Producers
CENTENNIAL, Colo.--BUSINESS WIRE--
Westwater Resources, Inc. (NYSE American: WWR), an energy technology and battery-grade natural graphite company (“Westwater” or the “Company”), announced today its support of the U.S. Department of Commerce’s (“DOC”) preliminary determination in the countervailing duty investigation of anode material from the People’s Republic of China. The DOC’s initial ruling determined that Chinese producers of anode material are receiving unfair government subsidies, and as a result, are now expected to be subject to U.S. import tariffs of up to 721%.
“This important decision by the DOC is another step toward leveling the playing field for U.S. producers,” said Jon Jacobs, Westwater’s Chief Commercial Officer. “We expect this announcement to accelerate off-take agreements with Westwater and to positively affect our ongoing financing efforts. U.S. automaker and cellmaker buyers are increasingly concluding that executing offtake supply agreements with U.S. producers like Westwater is the surest way to avoid import tariffs and is therefore their most economical long-term solution.”
Pursuant to the preliminary determination, select Chinese natural and artificial graphite anode material producers will be subject to U.S. import tariffs of up to 721% in addition to pre-existing Section 301 and reciprocal tariffs already totaling 55%.
The DOC is also conducting a concurrent antidumping investigation into anode materials imports from the People’s Republic of China. This investigation is focused on determining whether Chinese producers are selling graphite-based anode materials in the United States at unfairly low prices - thereby harming U.S. producers. A preliminary decision is expected in July, and if the DOC finds sufficient evidence of dumping, it could impose additional duties and broader penalties.
Mr. Jacobs added, “The outcome of the antidumping investigation is expected to play a critical role in supporting the development of a robust, secure, and fair domestic supply chain for graphite and battery materials, which are vital to U.S. energy independence and national security. For companies like Westwater Resources that are investing in sustainable, U.S.-based production capabilities, these trade actions should help reduce the nation’s reliance on foreign supply chains and benefit domestic producers.”
About Westwater Resources, Inc.
Westwater Resources is an energy technology company that is focused on developing battery-grade natural graphite. Westwater Resources’ primary project is the Kellyton Graphite Processing Plant that is under construction in east-central Alabama. In addition, Westwater Resources’ Coosa Graphite Deposit is the largest and most advanced natural flake graphite deposit in the contiguous United States — and is located across 41,965 acres (~17,000 hectares) in Coosa County, Alabama. For more information, visit 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 and phrases such as “initial,” “preliminary,” “important,” “expect,” “accelerate,” “positively impact,” “ongoing efforts,” “level the playing field,” “increasing,” “surest way,” “most economical,” “additional,” “broader,” “critical,” “help reduce,” and other similar words or phrases. Forward looking statements include, among other things, statements concerning: the importance of critical minerals including battery-grade graphite; establishing a graphite industry in the U.S.; tariffs associated with the importation of natural graphite into the U.S. including the percentage of those tariffs and the countries for which tariffs will apply; the Company’s business plans for its Kellyton Graphite Processing Plant; and efforts to manage existing off-take agreements or to put new supply agreements into place for the products from that Plant. The Company cautions that there are 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. Those uncertainties and other factors are discussed in Westwater’s Annual Report on Form 10-K for the year ended December 31, 2024, and subsequent securities filings, and they could cause actual results to differ materially from management expectations.
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