“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 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.”

Alabama Graphite plans to mine raw graphite in western Coosa County in the Alabama Graphite Belt. Westwater Resources acquired mineral rights to approximately 42,000 acres in 2018 and expects to begin mining operations by 2028. Alabama Graphite will use a proprietary process to purify the raw graphite and refine it into battery-grade purity. Alabama Graphite’s processing plant will produce approximately 7,500 tons of battery-grade graphite a year initially, eventually expanding to 15,000 tons. The battery in an average EV needs about 175-200 lb of graphite.

Alabama Graphite plans to make an initial investment of $80 million or more, with a second phase pushing the total to $124 million, in the graphite processing plant. Construction is expected to begin later this year, with the plant operating by the end of 2022. The plant is expected to employ at least 100 workers.

The agreements will provide Alabama Graphite with jobs and tax credits under the Alabama Jobs Acts, up to an estimated $29.9 million over 15 years. Alabama Industrial Development and Training will provide Alabama Graphite Products up to $925,000 in job-training and employee recruitment incentives.