Westwater Resources Inc. plans to build a first-of-its-kind advanced graphite processing plant in Coosa County, putting Alabama at the forefront in the production of an essential material in batteries that power electrical vehicles, electronics and other green energy products and equipment.
Alabama Graphite Products LLC 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 push the total investment to $124 million.
Centennial, Colorado-based Westwater — a mineral resources company committed to exploring and developing materials for clean, sustainable energy production – said construction will start later this year, with the graphite processing plant operating by the end of 2022.
he Coosa County graphite plant is expected to employ at least 100 full-time, permanent workers. Those jobs will pay an average hourly wage of $21.15.
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.
An agreement signed by Governor Kay Ivey will provide Alabama Graphite Products jobs and tax credits under the Alabama Jobs Act totaling an estimated $29.9 million over 15 years. In addition, AIDT, the state’s primary workforce development agency, is providing Alabama Graphite Products $925,000 in job-training and employee recruitment incentives.
As part of the project, water and wastewater treatment will be provided by Alexander City. To 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.
In addition to making Alabama home to the first large-scale producer of refined graphite in the U.S., 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.
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 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.
Alabama Graphite will use a proprietary process to purify the raw graphite and refine it into battery grade purity. That process is safer and more environmentally friendly and sustainable than the hydrofluoric acid-based process commonly used in China and elsewhere that use more water and produces more environment-damaging byproducts. ■