The Stellantis Termination

Westwater Resources, Inc. (NYSE American: WWR), an energy technology and critical minerals company focused on developing battery-grade natural graphite, announced on November 7, 2025 that FCA US LLC — a subsidiary of Stellantis N.V. — had unexpectedly terminated its Binding Offtake Agreement with the company. The agreement, originally signed on July 17, 2024, was one of three offtake arrangements underpinning Westwater’s ongoing debt syndication efforts.

Westwater’s two remaining offtake agreements, with SK On and Hiller Carbon, remain in effect. FCA has indicated it is open to reconsidering a new arrangement with Westwater, but the company noted that any future agreement would be based on current market conditions.

“Collectively, our offtake agreements with Stellantis, SK On, and Hiller Carbon supported our ongoing debt syndication. However, due to Stellantis’s unexpected termination, the debt syndication is now paused, although our engagement with EXIM and other government agencies regarding financing opportunities is ongoing.”

— Terence Cryan, Executive Chairman, Westwater Resources

Stellantis has been undergoing a sweeping strategic reset across its business. In February 2026, the automaker disclosed approximately €22.2 billion in charges tied largely to scaled-back electric vehicle ambitions, reflecting reduced BEV demand assumptions, EV supply chain resizing, and quality-related restructuring costs. This broader pullback from electrification commitments provides important context for the FCA termination decision.

Kellyton Plant Optimization

In response to the FCA termination, Westwater is undertaking a review of Phase I of its Kellyton Graphite Processing Plant, located in Kellyton, Alabama. The company intends to adjust the plant’s processing capacity downward to align with its existing offtake commitments and available financing.

This optimization strategy is expected to lower the plant’s initial throughput capacity but, in doing so, is projected to reduce total capital requirements and shorten the timeline to commercial production. Westwater stated it expects to complete the optimization evaluation by the end of 2025 and plans to provide an update to investors in early 2026.

“We are focused on optimizing the Kellyton Plant to meet our current offtake commitments, which should reduce the total capital needed to complete Phase I.”

— Terence Cryan, Executive Chairman, Westwater Resources

The Kellyton Graphite Processing Plant is Westwater’s primary commercial project. The company also holds the Coosa Graphite Deposit in Coosa County, Alabama — described as the largest and most advanced natural flake graphite deposit in the contiguous United States, spanning approximately 41,965 acres. Permitting activities at the Coosa deposit are continuing alongside the Kellyton optimization process.

Westwater is continuing to engage prospective customers for additional offtake opportunities and is providing graphite samples as part of its ongoing commercial development activities.

Financing Update

Despite the disruption to its debt syndication, Westwater reported a solid near-term liquidity position. Since June 30, 2025, the company raised approximately $55 million through its at-the-market (ATM) equity program and a series of convertible note offerings. As of November 5, 2025, Westwater held a cash balance of approximately $53 million.

The company also filed to increase the size of its ATM program to $75 million on October 17, 2025. The majority of capital raised was through ATM equity sales before the increase was filed.

“As fellow stockholders, we are mindful of dilution while recognizing the importance of maintaining sufficient liquidity to advance our strategic initiatives. The additional liquidity we raised after June 30 was driven by strong investor interest in critical minerals and Westwater’s positioning as one of the most advanced U.S.-based natural graphite developers with early market mover advantages.”

— Steve Cates, Chief Financial Officer, Westwater Resources

The company’s EXIM Bank loan application, which initiated the U.S. Export-Import Bank’s due diligence process, has experienced delays due to the U.S. government shutdown. Despite this, Westwater stated that engagement with EXIM and other government agencies for financing support remains ongoing, and the company has engaged advisors to explore additional government funding pathways.

Industry Context

The FCA termination reflects a broader deceleration in EV supply chain commitments by major automakers. Stellantis has been undergoing a comprehensive business reset, pivoting away from aggressive electrification timelines toward a more flexible multi-energy strategy that blends battery electric vehicles with plug-in hybrids and internal combustion engines. The automaker’s EV supply chain restructuring, which included €2.1 billion in charges tied to battery manufacturing capacity reductions, underscores the scale of this strategic recalibration.

For U.S.-based graphite developers like Westwater, the slowdown in OEM EV commitments introduces near-term commercial headwinds. Natural graphite is a critical component of lithium-ion battery anodes, and domestic supply development has been a key policy priority given the United States’ near-total reliance on Chinese-origin graphite for battery manufacturing. Westwater has publicly supported U.S. Department of Commerce determinations on countervailing and anti-dumping duties affecting graphite-based anode materials imported from China.

Despite the near-term setback, Westwater’s executive team expressed confidence in the long-term demand outlook. Executive Chairman Terence Cryan noted that the U.S. domestic battery materials sector remains in its early stages of development, and that Westwater is positioned at its forefront.

“The U.S. domestic battery materials sector is still in its infancy, and we are at its forefront, navigating the challenges that come with developing an industry at this early stage. Fundamentally, we’re confident in our ability to adapt and move forward effectively.”

— Terence Cryan, Executive Chairman, Westwater Resources

Westwater has scheduled a third quarter investor conference call for November 13, 2025, during which management is expected to provide further detail on the Kellyton optimization strategy and its revised financing roadmap.