Westwater Resources Inc (NASDAQ: WWR) is running for the top in the market this morning, following up on the strong gains seen from the stock yesterday. The gains came after the company applauded an Executive Order from President Trump. Here’s what’s going on:
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WWR Stock Runs For The Top After Applauding Trump’s Executive Order
It all started with a press release yesterday when Westwater Resources announced its delight with the Trump Administration following an Executive Order. The Order was signed on September 30, 2020, and addresses the threat to the United States supply chain from reliance on critical minerals from foreign adversaries.
The materials associated with the Executive Order were identified by the Department of the Interior in May of 2018 and include both natural graphite and vanadium. This is important for WWR as it has ties in the production of both of these key materials.
In fact, in the press release, the company said that the President’s Executive Order highlights the importance of its plans to develop the Coosa Graphite Deposit in east-central Alabama. It is expected that this project will be developed over the next two and a half years and will assist in feeding the supply chain natural graphite for use in batteries in the United States.
Moreover, the company said that during recent exploration activities at the mine site, it has discovered widespread and significant levels of vanadium mineralization.
At the moment, the United States is 100% dependent on imports for graphite. This is a key material found in lithium-ion batteries that power smartphones, laptops, and electric vehicles. Graphite was also on eof the critical materials named specifically in the Executive Order as the United States is heavily dependent on China for this supply.
In a statement, Christopher M. Jones, President and CEO at WWR, had the following to offer:
The President’s Executive Order opens up new avenues for financing and permitting our Coosa Graphite Project – this is good news for Westwater Resources and the United States.
This Is Big News
The bottom line is that now is the time for Westwater Resources and other mining companies to benefit greatly from the political climate. At the end of the day, the Trump Administration is working to ensure that basic materials used in the United States come from the United States.
As a result, those that develop critical materials here at home will likely benefit greatly from the political climate at the moment. For WWR, with the vast majority of graphite in the United States coming from elsewhere, the production of the Coosa Graphite Deposit will make it a cruicial part of the United States supply chain for battery producers.
All in all, with the order in mind, WWR stock is one to watch closely.
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