ITC backs U.S. graphite industry against China imports

CENTENNIAL, Colo. - The U.S. International Trade Commission ( ITC (NSE:ITC)) has made a preliminary determination that supports the American Active Anode Materials Producers’ (AAAMP) stance against China’s graphite exports. According to the ITC’s findings, these exports are materially hindering the development of a domestic graphite industry in the United States. The news has significant implications for Westwater Resources (WWR), a company currently valued at $56.25 million according to InvestingPro data.

In December 2024, the AAAMP filed a trade case requesting tariffs of up to 920% on Chinese imports of natural and synthetic graphite, which is used in the production of lithium-ion batteries. The Department of Commerce’s calculations showed dumping margins as high as 915%. On January 31, 2025, the ITC acknowledged these findings, aligning with the AAAMP’s allegations. This development has contributed to Westwater Resources’ strong market performance, with the stock posting an impressive 88.34% return over the past six months.

Jon Jacobs, Westwater Resources’ Chief Commercial Officer, expressed confidence that the U.S. government’s rapid response would positively impact their natural graphite anode material business, anticipating increased interest in their off-take agreements.

This preliminary decision by the ITC marks the beginning of an ongoing review process. The Department of Commerce and ITC are expected to provide further updates in March, with a preliminary determination on May 27th regarding whether graphite is being sold below fair value.

Westwater Resources, an energy technology company, is currently developing the Kellyton Graphite Processing Plant in east-central Alabama, which is under construction. Furthermore, the company’s Coosa Graphite Deposit in Coosa County, Alabama, is touted as the largest and most advanced natural flake graphite deposit in the contiguous United States. Trading at a price-to-book ratio of just 0.42, InvestingPro analysis suggests the stock is currently undervalued, though investors should note that the company is quickly burning through cash. For detailed insights and 12 additional ProTips about WWR, including comprehensive financial health metrics, visit InvestingPro.

The news release issued by Westwater Resources contains forward-looking statements that involve risks and uncertainties. These statements are not guarantees of future performance and are subject to external factors beyond the company’s control. The company urges readers not to place undue reliance on these forward-looking statements. Further information on potential risks is detailed in Westwater’s Annual Report on Form 10-K for the year ended December 31, 2023, and other securities filings. The company maintains a Financial Health Score of 2.17 (FAIR) according to InvestingPro’s comprehensive analysis, with the next earnings report expected on February 25, 2025.

This article is based on a press release statement from Westwater Resources, Inc.

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