American Battery Technology Company (NASDAQ:ABAT) saw its stock sink 23% in pre-market trading Thursday after disclosing that the U.S. Department of Energy (DOE) has terminated a $57.7 million grant tied to its lithium hydroxide manufacturing project.
The DOE ended the $115.5 million project grant — which included $57.7 million in federal funding — effective August 31, 2025, following an audit of awards issued through its Manufacturing Energy Supply Chain office.
American Battery said it has filed an appeal and plans to pursue dispute resolution remedies. The company emphasized that it still expects to move forward with the project “without impact to timeline or scope,” noting that about $52 million in reimbursable DOE funds remained at the time of termination.
The company also underscored its alternative funding capacity, pointing out that it has already raised more than $52 million from public markets year-to-date to support project development.
The Tonopah Lithium Flats Project, designated in June 2025 as a Transparency Priority Project by the National Energy Dominance Council, retains its priority status. This designation underscores the project’s strategic role in boosting domestic lithium production and advancing U.S. energy independence.
American Battery Technology Company stock price
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.