WASHINGTON — The Export-Import Bank of the United States announced a $25 million loan last week to support the development of a graphite plant in Coosa County, aiming to enhance domestic critical mineral supply chains.
Westwater Resources, an energy technology and battery-grade natural graphite company based in Colorado, which will own the proposed plant, plans to use the money for construction, equipment installation, commissioning and operational readiness activities at the Kellyton production facility.
It’s expected to start commercial production in 2027.
The plant is expected to produce coated spherical purified graphite, or CSPG, a form of natural graphite used primarily in lithium-ion batteries.
Westwater also owns the Coosa Graphite Deposit, which the company views as a potential long-term domestic source of natural graphite flake concentrate for the plant.
The company also holds the mineral rights across nearly 42,000 acres at Coosa, which the company believes is the largest natural flake graphite deposit in the contiguous United States.
“Kellyton is the most advanced American battery-grade natural graphite processing project, enjoying a 3-5 year first mover advantage over potential North American competitors,” Terence Cryan, executive chairman of Westwater Resources, said in a statement. “EXIM’s support strengthens our path toward commercial production in 2027 and recognizes the strategic importance of establishing this critical manufacturing capability here at home.”
The company said the plant is strategically located in central Alabama near battery and automotive manufacturing operations. The first phase of the Kellyton facility is expected to produce about 12,500 metric tons of CSPG annually.
Coosa Riverkeeper, an environmental group, warns that the proposed graphite mine will pollute the river and surrounding water bodies and “have major impacts to water quality,” according to the nonprofit’s website.
The $25 million comes from the EXIM’s Make More in America Initiative, which aims to strengthen export-oriented manufacturing projects.
The loan was part of a three-deal announcement from the bank, which will also loan $25 million to a Pennsylvania company and $8 million to a California project that will produce boron which is used in permanent magnets, semiconductors and glass.
The loans were announced during a critical minerals roundtable at the White House earlier this month.
“Critical mineral security is national security,” EXIM Chairman John Jovanovic said in a statement. “These deals are a large part of EXIM’s strategy to fortify our supply chains, restore crucial industries that support well-paying American jobs, and safeguard everyday Americans from supply shocks.”
During the first phase of the Kellyton plant, Westwater Resources expects to create 100 permanent jobs for the area.