Westwater Resources Shares Face Mounting Pressure After Key Deal Collapses

Westwater Resources finds itself navigating turbulent waters as its stock continues to deteriorate. The company's shares show no signs of recovery following the termination of a crucial supply agreement with Stellantis and disappointing quarterly earnings. Recent trading activity indicates persistent downward momentum, raising significant concerns among investors.

Market data reveals a troubling picture for Westwater Resources equity. Over the ten trading days ending November 17, the stock plummeted more than 23 percent, closing at $0.97. Pre-market activity this Tuesday suggests additional declines toward $0.843.

Both short-term and long-term moving averages currently generate sell signals, with resistance levels forming consistently. The technical analysis clearly indicates the security remains trapped in a pronounced downtrend, leaving market participants questioning whether the company can engineer a reversal or faces continued deterioration.

Stellantis Contract Termination Disrupts Strategic Foundation

A significant blow arrived on November 7 when FCA US LLC, a Stellantis subsidiary, unexpectedly terminated its binding graphite supply agreement. This contract represented a cornerstone of Westwater's financing strategy and its collapse has forced immediate operational changes.

Should investors sell immediately? Or is it worth buying Westwater Resources?

The company has paused its debt syndication efforts and must completely reassess its strategic approach for the Kellyton Graphite Plant. The timing of this development compounds existing challenges, as Westwater Resources recently reported a third-quarter net loss of $9.84 million, equivalent to $0.12 per share.

Strategic Pivot Underway Amid Financial Constraints

In response to these setbacks, management is implementing a revised strategy. The company is now re-engineering capital investments for Phase I of the Kellyton Graphite Plant, aiming for reduced capacity, lower capital requirements, and accelerated market entry. Westwater anticipates providing detailed plans by late 2025, with concrete results expected no earlier than 2026.

The critical question remains whether the company possesses sufficient financial flexibility to execute this strategic shift. Since June 2025, Westwater has secured approximately $55 million in capital. While liquidity stood at $53 million in cash as of November 5, providing near-term breathing room, the adequacy of these resources for a comprehensive strategic overhaul remains uncertain.

The company's future likely hinges on its ability to secure replacement supply agreements and successfully navigate EXIM financing processes. The coming weeks will prove decisive in determining Westwater Resources' trajectory.