Graphite Processing Plant to Help with Electric Vehicle Battery Production Coming to Coosa County

Gov. Kay Ivey gave remarks at the Alabama Graphite/Westwater Resources Announcement Tuesday June 22, 2021 in Montgomery.  (Governor’s Office/Hal Yeager)

Gov. Kay Ivey has announced that Westwater Resources Inc. plans to build a first-of-its-kind advanced graphite processing plant in Coosa County. It will make an essential material for batteries that power electrical vehicles, electronics and other green energy products and equipment.

Westwater said its Alabama Graphite Products LLC subsidiary plans to make an initial investment of $80 million or more to build the plant in Kellyton, near Alexander City. A second phase of the project will push the total investment to $124 million.

Centennial, Colorado-based Westwater said construction will start later this year, with the plant operating by the end of 2022.

“This plant not only will make Alabama the U.S. leader in graphite production, the go-to place for this important resource in battery manufacturing, it also will elevate our standing even more as a major player in the fast-growing electric vehicle sector,” Gov. Ivey said. “We’re home to four major auto plants, and the ability to source precious materials in state for the lithium-ion batteries used in electric and hybrid vehicles will be a big plus in attracting other manufacturing jobs to the state.”

The 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 the governor 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.

Local incentives for the project, estimated to total approximately $4.7 million, are expected to include tax abatements and use of 80 acres at Lake Martin Industrial Park at no cost. In addition, a bridge will be built to provide additional access to the industrial park.

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.

Westwater’s President and CEO Chris Jones noted that the U.S. government has declared graphite critical to the nation’s economy and national security.

“All of the graphite used and needed in the United States, including by America’s auto industry, is imported,” he said. “Most of it is from China, where media have reported both worker and environmental issues. Domestic production of graphite reduces our dependence on foreign sources. Even though the raw graphite we will process into battery-grade material will be imported initially, none of it will be from China. We have secured agreements from other providers.”

— Information from the Office of Gov. Kay Ivey