SK On Terminates Graphite Supply Deal with Westwater Resources
Event summary
- SK On terminated its Products Procurement Agreement with Westwater Resources on March 31, 2026.
- The agreement, signed in February 2024, covered a portion of Phase I production at Westwater's Kellyton Graphite Plant.
- SK On indicated willingness to consider future agreements under updated terms.
- Westwater continues construction at Kellyton and expects initial graphite production within 12 months of securing remaining project financing.
The big picture
The termination reflects ongoing volatility in the battery materials market, where graphite supply chains are under pressure from tariffs and shifting demand patterns. Westwater's ability to pivot and secure alternative customers will be critical as it positions itself as a domestic supplier of battery-grade graphite in the U.S. The company's vertically integrated platform, from mining to processing, represents a strategic advantage but also carries significant execution risk.
What we're watching
- Customer Relationships
- How Westwater will manage the loss of its major customer and secure new agreements.
- Market Dynamics
- Whether evolving market conditions and tariffs will continue to impact graphite supply agreements.
- Project Execution
- The pace at which Westwater can complete construction and secure remaining financing for Kellyton.
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