American Battery Technology Co. (NASDAQ:ABAT) stock tumbled Thursday after the U.S. Department of Energy (DOE) terminated its federal grant for a $115 million Nevada lithium hydroxide project.
- ABAT stock is tumbling. See the real-time price action here.
DOE Grant Canceled
The grant, part of the DOE's Manufacturing Energy Supply Chain program, was designed to fund the construction of a commercial-scale lithium hydroxide production facility aimed at strengthening U.S. supply chain independence for EV batteries.
Read Next: USA Rare Earth, Critical Metals Stocks Explode—JPMorgan Adds Fuel To The Fire
The DOE's decision came after the Trump administration conducted heightened reviews of federal clean-energy spending.
American Battery Tech confirmed in an SEC filing that the grant was terminated on Oct. 9. The company reported that approximately $52 million in reimbursable DOE funds remained unused at the time of cancellation.
The company formally appealed the decision the next day and stated that it intends to seek a resolution through DOE dispute channels.
While the grant's withdrawal is a serious setback for a company that has become a rising star in the EV materials sector, American Battery Tech maintains it will push forward with the project.
The company added that it has raised more than $52 million this year from public markets and secured a letter of interest from the U.S. Export-Import Bank for up to $900 million in potential financing to support its lithium extraction and refining operations in Nevada.
Executives say the project's timeline and scope remain unchanged despite the loss of federal support.
Read Next—Retail Investors’ Top Stocks With Earnings This Week: Fastenal, ASML, TSMC And More
Tonopah Flats Lithium Project Continues
ABAT's Nevada facility, known as the Tonopah Lithium Flats Project, retains its classification as a "Transparency Priority Project" under the National Energy Dominance Council and appears on the federal FAST-41 permitting dashboard—highlighting its national strategic value.
On Thursday, the company published a pre-feasibility study for the project.
“It confirms the immense potential of the Tonopah Flats Lithium Project in this pivotal moment when the U.S. is facing restrictions on the sourcing of critical minerals and extreme pressure to ramp the manufacturing of these critical minerals from domestic resources," stated CEO Ryan Melsert.
“We are excited to continue on our accelerated pathway to bringing this project to commercialization to contribute towards gaining U.S. independence in its critical mineral manufacturing supply chain,” Melsert added.
Price Action: ABAT stock plummeted 27% despite the company's continued optimism about the project. According to data from Benzinga Pro, American Battery Technology shares were down 27% at $6.55 at the time of publication on Thursday.
Read Next:
Photo: Shutterstock
