TLDR
- ABAT stock dives 36% even after a $2.57B lithium project PFS success.
- Tonopah Flats shows 45-year mine life and 21.8% project IRR strength.
- Lithium costs drop to $4,307/t as ABAT improves efficiency and grade.
- Federal FAST-41 status fast-tracks ABAT’s major Nevada lithium project.
- Despite selloff, Tonopah Flats remains a key U.S. lithium growth asset.
American Battery Technology Company (NASDAQ: ABAT) shares plunged 36.65% to close at $5.67 on Thursday. The decline deepened after hours, with the stock shedding another 11.11% to $5.04.
American Battery Technology Company (ABAT)
This came even as the company released a favorable Pre-Feasibility Study (PFS) for its Tonopah Flats Lithium Project in Nevada.
The company confirmed a post-tax net present value of $2.57 billion at an 8% discount rate. It also reported a strong 21.8% internal rate of return and a 7.5-year investment payback period. Despite these figures, the stock’s decline indicates market concerns unrelated to project fundamentals.
The sharp drop occurred shortly after the PFS publication, suggesting that market reaction stemmed from other external or sentiment-driven factors. Traders may have anticipated the report, choosing to exit positions regardless of its positive contents. The after-hours decline further underscored broader uncertainty around the stock.
Tonopah Flats PFS Establishes Long-Term Value
The PFS confirms that the Tonopah Flats Lithium Project is financially and technically viable. The project is expected to produce 30,000 tonnes per year of battery-grade lithium hydroxide. It also features a projected 45-year mine life based on just the southern portion of the property.
The study revealed a competitive production cost of $4,307 per tonne and a total operating cost of $6,994 per tonne. A 9.2% cost reduction from the April 2024 Initial Assessment added further economic strength. The refined lithium grade jumped from 800 ppm to 2,100 ppm using internal beneficiation techniques.
Energy costs are also reduced by integrating behind-the-meter power systems with a battery energy storage system. This setup supports stable power delivery and helps lower electricity expenses to $0.035/kWh. The company’s pilot facility, already operational, aims to refine energy efficiency and processing recoveries further.
Significant Resource Growth and Federal Permitting Progress
American Battery Technology increased Measured and Indicated lithium resources by 53% compared to its 2024 estimates. Proven and Probable reserves now total 2.73 million tonnes of lithium hydroxide monohydrate. The company estimates total lithium resources at over 21 million tonnes.
The federal permitting process advanced significantly as the project earned FAST-41 Covered Project status in August 2025. This status fast-tracks regulatory approvals and allocates more federal resources to the permitting process. All required NEPA baseline reports and the mine plan are currently under review by the BLM.
In April 2025, the U.S. Export-Import Bank issued a $900 million debt financing letter to fund project construction. The company plans phased construction, starting with 5,000 tpa output and scaling up to 30,000 tpa. The project’s strategic location and federal support position it as a key U.S. lithium supply source.
Path to Commercialization Continues Despite Stock Pressure
The PFS recommends proceeding to a Definitive Feasibility Study estimated at $5.8–$6.8 million. American Battery Technology plans to finalize permits, expand technical studies, and refine engineering. The company also intends to build strong community ties and ensure sustainable practices throughout development.
Mining operations will use conventional surface methods, running 24/7 to supply the on-site refinery. Infrastructure development and power agreements with local utilities are ongoing. Commercial production is expected to reach full capacity by the third year of operation.
Despite the selloff, the project remains economically sound and technically advanced. Sentiment-driven volatility continues to dominate the stock’s short-term behavior. Long-term prospects will likely hinge on execution, market conditions, and continued federal support.
