Shares of Westwater Resources, Inc (NASDAQ: WWR) soared on Monday as the company commended the executive order signed by President Donald Trump aiding the development of a US supply of graphite. President Trump has earlier declared that it is necessary to increase and maintain our economic and military strength to reduce the reliance on critical minerals from foreign adversaries. The executive order of the President revealed that a strong America cannot rely on the imports of critical minerals from foreign adversaries.
Westwater Resources commended the President’s declaration as it showed the importance of Westwater plans to develop the Coosa Graphite deposit in east-central Alabama. Through this Coosa Graphite Plan, the company aimed to develop a U.S. domestic supply for natural graphite for use in all types of batteries in the United States in the period of the next two and half years.
Graphite is the primary material which is used in lithium-ion batteries that help power smartphones, laptops, and electric vehicles, and help store power from renewable energy sources. Metals and mining company revealed that the US is 100% relied on the imports of graphite. The plan to develop natural graphite which is to be used in all types of batteries in the US will enhance the economic strength of the company.
Westwater Resources, Inc (NASDAQ: WWR) shares were trading up 87.33% at $8.28 at the time of writing on Monday. Westwater Resources’ share price went from a low point around $0.25 to briefly over $9.25 in the past 52 weeks, though shares have since pulled back to $8.28. Westwater Resources recorded the trading volume of 200.58 million as compared to the average volume of 8.08 million. WWR market cap has remained high, hitting $45.87 million at the time of writing.
The critical minerals mentioned in the executive orders referred to the natural graphite and vanadium. Westwater Resources revealed that the recent exploration process along the Roscoe Ridge at the mine site, Westwater has also found widespread and significant levels of vanadium mineralization. For Graphite import, the US is heavily dependant on China for its supply.
On the other hand, Vanadium is a vital component in the manufacture of high-strength steel. It is used as a catalyst in chemical manufacturing and is also used as a component in the manufacturing of some ceramic, glass, and pigment products. The US is fulfilling the industrial requirements of vanadium from mines located in China, South Africa, and Russia.