Key Highlights
- American Battery Technology shares climbed 30% following the Department of Energy’s decision to fully restore a $115 million federal grant.
- The funding had been previously cancelled in October 2025 during a widespread DOE review that eliminated numerous program awards.
- ABAT filed an appeal on October 10, 2025, successfully securing complete reinstatement without modifications to funding amounts or project milestones.
- The Nevada-based Tonopah Flats Lithium Project is designed to produce 5,000 tonnes annually of battery-grade lithium hydroxide at full capacity.
- According to a 2025 PreFeasibility Study, the venture projects a lifetime after-tax net present value of $2.57 billion with a 21.8% internal rate of return.
Shares of American Battery Technology (ABAT) surged 30% on Monday following the company’s successful appeal with the Department of Energy, which resulted in complete restoration of federal funding for its $115 million Nevada lithium refinery initiative.
American Battery Technology Company Common Stock, ABAT
The Department of Energy reinstated the grant without any reductions to the funding amount or alterations to the project’s technical and commercial objectives.
The federal award will finance the initial construction phase of ABAT’s Tonopah Flats Lithium Project, a commercial-scale critical minerals processing facility located in Nevada.
The company originally received notification of the five-year DOE grant selection in October 2022. ABAT had successfully fulfilled requirements for the first two contract years before the Department of Energy cancelled the award on October 9, 2025, during a broad initiative that terminated hundreds of similar grants.
The company responded swiftly, submitting its appeal the following day on October 10, 2025.
ABAT subsequently participated in the Department of Energy’s Informal Dispute Resolution procedure. Following an extensive evaluation of technical specifications and commercial viability, the DOE determined that reversing the termination and allowing the project to proceed was “warranted.”
Project Specifications and Economics
The Tonopah Flats facility is planned to operate at an initial annual production capacity of 5,000 tonnes of battery-grade lithium hydroxide.
A PreFeasibility Study released in October 2025 calculated the project’s lifetime after-tax net present value at $2.57 billion using an 8% discount rate, alongside an internal rate of return reaching 21.8%.
In June 2025, the Tonopah Flats Lithium Project received designation from the White House’s National Energy Dominance Council and the FAST-41 Permitting Council as a Priority Project for critical minerals, making it eligible for expedited federal permitting processes.
According to ABAT, Tonopah Flats represents one of the most substantial identified critical mineral lithium deposits within United States territory.
Management Statement
Chief Executive Officer Ryan Melsert expressed that the organization is “proud of our long-standing partnership with the U.S. Department of Energy.”
He further stated the company is “grateful that after rigorous due diligence it has concluded that this critical mineral lithium refinery project has achieved all of its contracted technical and commercial milestones to date.”
With federal funding now secured once again, ABAT indicated it will proceed with advancing the Tonopah Flats development.
The reinstated agreement includes a revised timeline that accounts for delays incurred during the review and appeals process.
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