American Battery Technology (ABAT) shares rallied as much 35% on Monday, after the company announced it had successfully won its appeal with the Department of Energy to fully reinstate a $115 million grant for its commercial-scale lithium refinery project.
The grant, originally awarded in October 2022 as a five-year commitment, was abruptly terminated last year on Oct. 9, as part of a sweeping DOE initiative that cancelled hundreds of federal awards.
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At the time, the company responded with remarkable speed, filing its appeal within 24 hours of the termination notice and subsequently engaging in the DOE’s Informal Dispute Resolution process.
Over the following months, ABAT participated in “rigorous” technical and commercial reviews, culminating in a final review meeting in December 2025.
The DOE finally concluded that rescission of the termination and continuation of the project was warranted, reinstating the grant in its entirety with no changes to funding amounts or technical and commercial milestones.
Despite today’s rally, ABAT stock remains down nearly 30% versus its year-to-date high.
www.barchart.comHow DOE Funding Would Help ABAT Stock?
The reinstated funding supports the first construction phase of ABAT’s Tonopah Flats Lithium Project in Nevada, which is designed to produce 5,000 tonnes of battery-grade lithium hydroxide annually at initial capacity.
An October 2025 Pre-Feasibility Study demonstrated compelling economics, projecting a lifetime after-tax net present value of $2.57 billion at an 8% discount rate, an internal rate of return of 21.8%, and a production cost of $4,307 per tonne of lithium hydroxide monohydrate.
The project had already received Priority Project designation from the White House’s National Energy Dominance Council and FAST-41 Permitting Council in June 2025, providing access to expedited federal permitting.
Significance of the Reinstated Grant
What makes this reinstatement particularly notable is its rarity.
American Battery Technology’s chief executive Ryan Melsert emphasized that very few of the hundreds of DOE grants terminated last fall were successfully appealed and reinstated.
The project has now received support across three administrations, with initial bench-scale development funded during President Donald Trump’s first term, the commercial grant awarded during President Joe Biden’s administration, and reinstatement occurring under the second Trump administration.
This bipartisan continuity underscores the strategic importance of domestic critical mineral production for U.S. national security and energy dominance.
Should You Buy ABAT Shares Today?
The broader market context also supported ABAT’s rally, as Monday saw a strong tech-led rebound with Nasdaq gaining nearly 1% and the semiconductor sector posting one of its strongest sessions in recent memory.
That said, American Battery Technology Co remains a high-risk proposition especially since it’s a penny stock (prone to pump and dump behaviour) going for a rather alarming 118x sales.
Plus, ABAT receives coverage from just one Wall Street analyst currently, which means it lacks deep institutional research as well.
This makes the stock highly volatile and difficult for retail investors to gauge its true market value.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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