Key Takeaways
- American Battery Technology shares climbed 30% following the complete restoration of its $115 million Department of Energy grant for lithium refinery development.
- The funding was initially cancelled in October 2025 during a widespread DOE initiative that eliminated hundreds of federal awards.
- Following an appeal filed on October 10, 2025, the company successfully secured complete reinstatement without any modifications to funding amounts or project benchmarks.
- The Nevada-based Tonopah Flats Lithium Project is designed to produce 5,000 tonnes of battery-grade lithium hydroxide annually in its initial phase.
- According to a 2025 PreFeasibility Study, the project shows a lifetime after-tax net present value of $2.57 billion with an internal rate of return of 21.8%.
Shares of American Battery Technology (ABAT) surged 30% on Monday following the company’s successful appeal with the United States Department of Energy, which resulted in complete restoration of federal funding totaling $115 million for its lithium refinery initiative.
American Battery Technology Company Common Stock, ABAT
The Department of Energy reinstated the complete grant package — maintaining all original funding levels and preserving all technical and commercial benchmarks without modification.
The federal funding will support the initial construction phase of ABAT’s Tonopah Flats Lithium Project located in Nevada, representing a commercial-scale facility for critical mineral refinement.
The company originally received its five-year DOE grant selection in October 2022. After successfully completing the initial two contracted years, the DOE abruptly terminated the funding on October 9, 2025, during a broad-reaching initiative that eliminated hundreds of federal grants.
American Battery Technology responded swiftly, submitting its appeal within 24 hours on October 10, 2025.
The company subsequently participated in the DOE’s Informal Dispute Resolution procedure. Following comprehensive technical and commercial evaluations spanning several months, the Department of Energy determined that reversing the cancellation and allowing the project to proceed was “warranted.”
Project Specifications and Economics
The Tonopah Flats facility is planned to operate with an initial annual production capacity of 5,000 tonnes of battery-grade lithium hydroxide.
An October 2025 PreFeasibility Study 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 White House’s National Energy Dominance Council and the FAST-41 Permitting Council designated the Tonopah Flats Lithium Project as a critical mineral Priority Project, providing access to expedited federal permitting procedures.
According to American Battery Technology, Tonopah Flats represents one of the most significant identified critical mineral lithium deposits within the United States.
Leadership Commentary
Chief Executive Officer Ryan Melsert expressed that the company remains “proud of our long-standing partnership with the U.S. Department of Energy.”
Melsert further stated the organization 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 funding now fully restored, American Battery Technology confirmed it will proceed with advancing the Tonopah Flats development.
The reinstated contract features an adjusted project timeline that compensates for the period lost during the review and appeals procedure.
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