American Battery Technology Maps U.S. Battery Metals Push With Recycling, Nevada Lithium

Key Points

• American Battery Technology is pursuing a U.S.-based battery-materials supply chain centered on lithium-ion battery recycling and its Tonopah Flats Lithium Project in Nevada, targeting lithium, nickel, cobalt and manganese production.
• The company’s Reno recycling facility can process 20,000 metric tons annually, while a proposed southeastern facility would expand capacity to 100,000 tons with a $150 million Department of Energy grant and an estimated $375 million total cost.
• Tonopah Flats is projected to have a 45-year mine life, $2.6 billion net present value and 21.8% after-tax internal rate of return. American Battery Technology reported fiscal 2026 revenue of $21.7 million, held $49.5 million in cash and had no debt.

American Battery Technology NASDAQ: ABAT is advancing a U.S.-based battery-materials strategy built around lithium-ion battery recycling and the development of its Tonopah Flats Lithium Project in Nevada, Chief Financial Officer Alex Flores said during a company presentation.

Flores said the company is seeking to build a domestic, lower-cost and environmentally responsible supply chain for battery metals, including lithium, nickel, cobalt and manganese. He cited supply-security concerns, logistics costs and environmental risks associated with overseas sourcing as major challenges for the U.S. battery industry.

“Our approach is to first close the loop and then fill the loop,” Flores said, referring to the company’s recycling operations and its planned lithium mining and refining operations.

Recycling Operations and Expansion Plans

American Battery Technology operates a 138,000-square-foot lithium-ion battery recycling facility outside Reno, Nevada, with annual intake capacity of 20,000 metric tons. Operations at the site began in October 2023, according to Flores.

The company’s recycling process first dismantles battery packs into modules, cells and sub-cell components. It separates materials including copper, aluminum and steel, while producing a lithium-bearing intermediate known as black mass. In a subsequent refining phase, the company said the material can be processed into battery-grade nickel sulfate, manganese sulfate, cobalt sulfate and lithium hydroxide.

Flores said the company currently sees stronger economics in selling black mass than in further refining it into lithium products. He said a federal directive issued on Aug. 27 banned black-mass exports, but American Battery Technology received a license allowing it to export up to $100 million of the material.

The company is not selling black mass to China, Flores said, adding that its customers are primarily in South Korea and other OECD countries.

American Battery Technology also plans to build a second recycling facility in the southeastern U.S. The proposed site would have annual intake capacity of 100,000 metric tons, representing a five-fold increase from the Reno facility’s capacity. Flores said the project has received a Department of Energy grant equivalent to $150 million and is expected to require total capital expenditures of $375 million. The funding is a grant rather than a loan and carries performance milestones, he said.

Tonopah Lithium Project

On the mining side, the company is developing its Tonopah Flats Lithium Project near Tonopah, Nevada. Flores said the project encompasses 631 unpatented lode mining claims covering more than 13,000 acres and is based on a claystone lithium resource rather than conventional ore.

According to Flores, the project contains 21.3 million tons of accessible lithium hydroxide monohydrate and has a projected 45-year mine life. The company expects the operation to employ more than 200 full-time workers and reach a peak mining rate near 30,000 tons per day.

Flores cited the company’s pre-feasibility study, published about a year ago, which estimated an after-tax internal rate of return of 21.8%, net present value of $2.6 billion and production costs of slightly more than $4,300 per metric ton of lithium hydroxide monohydrate. Planned infrastructure includes a surface mine, commercial refinery and a behind-the-meter solar field with battery energy storage.

The project has received a $900 million letter of interest from the Export-Import Bank, Flores said. It has also been designated a priority project under the FAST-41 permitting framework. The company has initiated a definitive feasibility study, completed required National Environmental Policy Act baseline studies and submitted results to the Bureau of Land Management.

Flores said the Bureau of Land Management approved the company’s mining and refining plan of operations, which American Battery Technology had been developing since November 2022. The company was awaiting a notice of intent from the agency before moving into the environmental impact statement process. Under its expectations for the FAST-41 process, Flores said the company could break ground by the middle of the following year.

Financial Results and Domestic Supply Focus

Flores said American Battery Technology reported record fiscal 2026 revenue of $21.7 million, up 407% year over year. Cost of goods sold increased 67%, which he attributed to operational efficiencies at the Nevada recycling facility. The company reported cash-basis gross profit of $1.7 million, a non-GAAP figure excluding non-cash items such as depreciation and stock compensation.

The company ended the fiscal year with $49.5 million in cash and no debt, Flores said.

He also said American Battery Technology has operated a multi-ton-per-year integrated pilot facility that produced battery-grade lithium from Nevada claystone. The company is now pursuing strategic partners and long-term commercial offtake agreements as it seeks to expand its role in the North American battery-materials supply chain.

About American Battery Technology (NASDAQ:ABAT)

American Battery Technology Company develops technologies and operates projects intended to support a domestic battery-materials supply chain. The company focuses on lithium-ion battery recycling, lithium extraction from unconventional resources such as claystone, and the production of battery-grade materials for use in new batteries.

Its recycling business is designed to recover lithium, nickel, cobalt, manganese and other valuable materials from end-of-life batteries and manufacturing scrap.

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