American Battery Technology Company (NASDAQ:ABAT) shares are trading lower Wednesday, among other battery-related companies. Recent reports suggested that the Department of Energy canceled more than $700 million in battery and manufacturing awards.
• ABAT shares are experiencing downward pressure. Get the complete picture here.
What To Know: According to Reason, the Energy Department canceled funding for several companies earlier this month, including American Battery Technologies, Ascend Elements, Anovion, ICL Specialty Products and LuxWall. The grants were part of Biden-era energy spending programs targeting battery and green manufacturing projects.
The Energy Department told E&E News that the projects "had missed milestones, and it was determined they did not adequately advance the nation’s energy needs, were not economically viable, and would not provide a positive return on investment of taxpayer dollars."
American Battery Technologies was awarded a $57.7 million grant in 2022 to develop a commercial-scale cathode material facility in Nevada, along with another $123 million grant in 2024 for a separate project. The recent funding cut affects only the earlier grant, while the 2024 award remains in place.
ABAT Price Action: American Battery Technology shares closed down on Wednesday 2.62% lower at $5.94, according to data from Benzinga Pro.
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