Key Takeaways
- American Battery Technology shares climbed 30% following the Department of Energy’s decision to fully restore its $115 million federal grant.
- The DOE had previously cancelled the grant in October 2025 during a widespread cancellation of numerous federal awards.
- The company filed an appeal on October 10, 2025, resulting in complete reinstatement without modifications to funding amounts or project milestones.
- The Nevada-based Tonopah Flats Lithium Project will have an initial annual production capacity of 5,000 tonnes of battery-grade lithium hydroxide.
- According to a 2025 PreFeasibility Study, the project shows 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) rallied 30% on Monday following the company’s successful appeal with the Department of Energy, which resulted in the complete restoration of federal funding for its $115 million lithium processing facility.
American Battery Technology Company Common Stock, ABAT
The DOE’s decision reinstated the grant without any reductions — maintaining the original funding level and preserving all technical and commercial objectives.
The federal funding will support the initial construction phase of ABAT’s Tonopah Flats Lithium Project located in Nevada, which represents a commercial-scale facility for processing critical minerals.
The company originally received the five-year DOE grant selection in October 2022. ABAT had successfully fulfilled requirements for the first two contracted years before the Department of Energy cancelled the award on October 9, 2025, amid a broader initiative that eliminated hundreds of federal grants.
The company responded swiftly, submitting its appeal the following day on October 10, 2025.
ABAT subsequently participated in the DOE’s Informal Dispute Resolution procedure. Following extensive technical and commercial evaluations spanning several months, the Department of Energy determined that reversing the termination and allowing the project to proceed was “warranted.”
Project Details and Financial Projections
The Tonopah Flats facility will process 5,000 tonnes annually of battery-grade lithium hydroxide in its first phase.
An October 2025 PreFeasibility Study calculated the project’s lifetime after-tax net present value at $2.57 billion using an 8% discount rate, along with an internal rate of return reaching 21.8%.
In June 2025, the White House’s National Energy Dominance Council and FAST-41 Permitting Council designated the Tonopah Flats Lithium Project as a Priority Project for critical minerals, granting it access to expedited federal permitting processes.
According to ABAT, Tonopah Flats represents one of America’s largest identified critical mineral lithium deposits.
Management Statement
Ryan Melsert, Chief Executive Officer, expressed the company’s appreciation for its “long-standing partnership with the U.S. Department of Energy.”
Melsert noted the company’s gratitude “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 secured, American Battery Technology confirmed it will proceed with advancing the Tonopah Flats project through its next development stages.
The reinstated agreement incorporates a revised timeline that compensates for delays caused by the review and appeals process.
