American Battery stock falls after DOE terminates $57.7M grant

Published 16/10/2025, 13:54
© Reuters.

Investing.com -- American Battery Technology Company (NASDAQ:ABML) stock plunged 23% in premarket trading Thursday after the company disclosed that the U.S. Department of Energy (DOE) has terminated a significant grant agreement.

The DOE terminated a $115.5 million project grant that would have provided $57.7 million in federal funding for the company’s lithium hydroxide manufacturing facility. The termination, effective August 31, 2025, follows an audit of grants awarded through the DOE’s Manufacturing Energy Supply Chain office.

American Battery has submitted an appeal against the termination and plans to pursue dispute resolution remedies. Despite the setback, the company stated it intends to proceed with the project "without impact to timeline or scope," noting that approximately $52 million in reimbursable DOE funds remained on the agreement at the time of termination.

The company highlighted that it has already raised over $52 million from public markets year-to-date, suggesting it has alternative funding sources to continue the project.

American Battery’s Tonopah Lithium Flats Project, which was designated as a Transparency Priority Project by the National Energy Dominance Council in June 2025, maintains its status as a Priority Project. This designation recognizes the project’s importance in advancing domestic lithium production and supporting U.S. energy independence.

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