Key Highlights
- American Battery Technology shares climbed 30% following the Department of Energy’s decision to fully restore a $115 million grant for its Nevada lithium refinery.
- The DOE had previously cancelled the award in October 2025 during a widespread termination of hundreds of federal grants.
- Following an appeal filed on October 10, 2025, the company secured complete reinstatement without any modifications to funding amounts or project benchmarks.
- The Tonopah Flats Lithium Project in Nevada is designed to produce 5,000 tonnes annually of battery-grade lithium hydroxide in its initial phase.
- According to a 2025 PreFeasibility Study, the development holds 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) experienced a significant 30% surge on Monday following the company’s successful appeal that resulted in the complete restoration of federal funding for its $115 million lithium refining facility.
American Battery Technology Company Common Stock, ABAT
The Department of Energy reversed its earlier decision, reinstating the grant with zero reductions to the funding amount and maintaining all original technical and commercial objectives.
This federal funding will enable construction of the initial phase of ABAT’s Tonopah Flats Lithium Project located in Nevada, representing a commercial-scale critical minerals processing facility.
The company originally received the DOE grant selection in October 2022 for a five-year program. ABAT had successfully fulfilled requirements for the first two contracted years before the DOE terminated the award on October 9, 2025, during a broad initiative that eliminated numerous federal grants.
The battery technology company responded swiftly, submitting its appeal within 24 hours on October 10, 2025.
Through the Informal Dispute Resolution process with the DOE, the company underwent extensive technical and commercial evaluations. Following this comprehensive review, the Department of Energy determined that reversing the termination and allowing project continuation was “warranted.”
Project Specifications and Economics
The Tonopah Flats facility is planned with 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, accompanied by 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 processes.
According to American Battery Technology, Tonopah Flats represents one of the most substantial identified critical mineral lithium deposits within the United States.
Management Commentary
Ryan Melsert, the company’s CEO, 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, American Battery Technology confirmed it will proceed with advancing development of the Tonopah Flats project.
The reinstated contract incorporates a revised timeline that compensates for delays incurred during the review and appeal proceedings.
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