Westwater Cuts Kellyton Costs to $245M, Secures SK On Offtakes and US Patent
Westwater lost $27 million in 2025, up from $12.7 million in 2024, and cut Kellyton Phase 1 capital costs to $245 million, leaving less than $100 million to finish. Offtake agreements with SK On and Hiller Carbon plus a US patent for acid-free purification bolster its domestic graphite supply strategy.
1. Q4 2025 Financial Highlights
Westwater reported a net operating loss of $27 million in 2025, compared with a $12.7 million loss in 2024, reflecting higher operating expenses as it advances its graphite projects. The company ended the year with approximately $50 million in cash and plans to pursue non-dilutive financing to preserve liquidity.
2. Kellyton Phase 1 Progress
Phase 1 capital costs for the Kellyton graphite plant were reduced from $270 million to $245 million, demonstrating capital discipline. With cash on hand covering about $50 million, Westwater needs less than $100 million more to complete construction and expects production by late 2028 or early 2029.
3. Offtake Agreements and Patent Achievement
Westwater secured offtake agreements with major partners SK On and Hiller Carbon, expanding its customer base beyond electric vehicles to include battery storage and industrial users. The company also received a US patent for an environmentally friendly, hydrofluoric acid-free graphite purification process, enhancing its competitive edge.
4. Government Support and Permitting Outlook
Westwater received a letter of interest from the EXIM Bank and is pursuing additional government-backed financing aligned with the US critical minerals strategy. The company anticipates the NPDS permit for its Coosa deposit to be issued this year, leveraging experienced local engineering support.