Westwater Resources Shares Plummet Following Major Contract Termination

Westwater Resources shares are experiencing a dramatic collapse after automotive giant Stellantis terminated a crucial supply agreement. The stock declined 6.5% during yesterday's session, closing at just $1.01 and marking its seventh losing day within a ten-trading-day period.

Trading activity revealed widespread investor anxiety, with shares fluctuating between $0.98 and $1.10 on significantly elevated volume. This represented a daily volatility exceeding 12%. Since mid-October, the equity has surrendered a staggering 71% of its value. Technical indicators uniformly signal bearish momentum, with both short-term and long-term moving averages pointing downward.

Amid the severe selling pressure, the RSI-14 reading of 24 indicates the stock has reached extremely oversold conditions. This technical extreme could potentially set the stage for a near-term rebound, though market sentiment remains decidedly negative.

Strategic Crisis After Stellantis Withdrawal

The crisis stems from Stellantis's unexpected November 3rd decision to cancel its binding battery-grade graphite supply agreement. This development has immediate operational consequences: Westwater has halted its planned debt syndication effort and must now completely overhaul its business strategy.

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

Without its anchor customer, the company is shifting focus to optimizing the initial phase of its Kellyton Graphite Plant. The revised approach targets reduced capacity, lower capital expenditures, and accelerated commercialization. Management expects to provide a comprehensive update on this new direction by early 2026.

Financial Position Provides Some Buffer

Despite these significant setbacks, Westwater's balance sheet shows certain strengths:

• Quarterly loss of $0.12 per share, matching analyst expectations
• Approximately $55 million in capital raised since mid-2025
• Current liquidity position of $53 million
• Remaining supply agreements with SK On and Hiller Carbon

The critical question facing investors is whether these financial resources will prove sufficient to fund the company's strategic pivot. Market participants appear skeptical, with the persistent downward trend in share price reflecting deep concerns about Westwater's ability to navigate suddenly changed market conditions.