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Alabama Gov. Kay Ivey announced Friday that a $1 million grant was awarded to the City of Alexander City, AL to provide infrastructure that will support the development of a new graphite processing plant in the Kellyton Industrial Park.

Westwater Resources subsidiary Alabama Graphite Products is investing $202 million to open the first large-scale graphite processing plant in the US. Graphite processed at the location will be used in lithium-ion battery manufacturing. The location will have an initial graphite processing capacity of 7,500 tn/yr that will eventually be ramped up to over 15,000 tn/yr.

“I am beyond proud to continue lending support to Westwater Resources’ plans to build the first US-based graphite processing plant,” Gov. Ivey said in a release. “We can be proud that this important ingredient in producing EV batteries is being produced here in the United States, but also here in Sweet Home Alabama.”

The Community Development Block Grant (CDBG) funds will allow Alexander City to connect the new plant to the community’s sewer system.  

Alabama Graphite Products’ new site is expected to create 100 new jobs when it opens. Plans for the project were first revealed last June, Powder & Bulk Solids reported. The state will provide Westwater with an estimated $29.9 million in jobs and tax credits through the Alabama Jobs Act over a 15-year period. A state-run workforce development agency, AIDT, will give the company $925,000 in job training and employee recruitment initiatives.

The company will mine raw graphite in western Coosa County, where it acquired mineral rights to 42,000 graphite-deposit-rich acres in 2018. Operations at the new mine are slated to commence in 2028. 

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