American Battery Technology Co., a prominent player in the development and recycling of lithium materials sourced from the U.S., announced on Wednesday that the U.S. Department of Energy (DOE) has terminated its grant to establish a facility for manufacturing battery cathode grade lithium hydroxide. This grant, which included a commitment of $57.7 million from the DOE’s Manufacturing Energy Supply Chain office matched by an equal amount from the company, was a strategic move to bolster domestic battery production.
As of October 9, the company indicated that approximately $52 million in reimbursable DOE funds remained. The termination of the grant follows a notice issued in May stating that all grants under the MESC program would be subject to audits as mandated by the DOE.
In light of this setback, American Battery Technology Co. has expressed its intention to appeal the termination and is actively seeking dispute resolution remedies. Despite the challenges, the company is optimistic about its future; it has successfully raised over $52 million from public markets this year and remains committed to proceeding with the project on schedule and within its original scope.
In a positive turn, the company received a letter of interest from the U.S. Export-Import Bank in April for $900 million in financing aimed at supporting the construction of its lithium mine and refinery located in Nevada. This financial backing could significantly bolster the company’s operations in the competitive lithium market and contribute to the broader goals of domestic battery production, positioning American Battery Technology Co. as an essential player in the evolving landscape of energy solutions.