American Battery Secures Reinstatement of DOE Grant for Lithium Refinery Project

American Battery Technology Company (ABTC) has successfully appealed the termination of a U.S. Department of Energy (DOE) grant supporting the development of its Tonopah Flats Lithium Project (TFLP), restoring federal funding for a $115 million commercial-scale lithium refinery project in Nevada. The reinstatement allows the company to proceed with plans to construct the first phase of a refinery designed to produce battery-grade lithium hydroxide and strengthen domestic critical mineral supply chains.

Headquartered in Reno, Nevada, ABTC develops technologies for both primary critical mineral production and battery material recycling. The Tonopah Flats Lithium Project is one of the largest identified lithium resources in the United States and forms a key part of the company's strategy to establish a domestic source of battery materials for the electric vehicle and energy storage sectors.

The restored grant supports construction of the first phase of the refinery, which is planned to produce 5,000 tonnes of battery-grade lithium hydroxide annually. According to the company, the DOE reinstated the award in full, maintaining the original funding amount, project milestones, and technical requirements while adjusting the project schedule to account for the review period.

The decision marks an important step for ABTC as the United States seeks to reduce dependence on imported critical minerals and expand domestic processing capacity. Lithium hydroxide is a key component in many advanced lithium-ion battery chemistries, and securing domestic refining capacity has become a strategic priority for policymakers focused on energy security and industrial competitiveness.

“We are proud of our long-standing partnership with the U.S. Department of Energy, and are grateful that after rigorous due diligence it has concluded that this critical mineral lithium refinery project has achieved all of its contracted technical and commercial milestones to date,” said Ryan Melsert, Chief Executive Officer of ABTC.

Melsert noted that relatively few DOE grant recipients whose awards were terminated in late 2025 were able to secure reinstatement through the appeal process. He said the outcome reflects the company's progress in developing and demonstrating its proprietary lithium extraction and refining technologies.

ABTC was originally selected in 2022 to receive the five-year competitive DOE grant for the refinery project. The company completed the first two years of the program before receiving notice in October 2025 that the award would be terminated as part of a broader review affecting hundreds of DOE-funded projects.

Following the termination notice, ABTC entered the DOE’s Informal Dispute Resolution process and participated in a series of technical and commercial evaluations. After reviewing project documentation and performance milestones, the DOE concluded that continuation of the project was justified and rescinded the termination decision.

The project has received support from multiple federal initiatives over several administrations. Early-stage technology development and demonstration work were backed by funding from the DOE's Advanced Materials and Manufacturing Technologies Office. More recently, the project received support through the DOE's Manufacturing Energy Supply Chain office. In June 2025, the White House National Energy Dominance Council and the FAST-41 Permitting Council designated the Tonopah Flats Lithium Project as a Priority Project, making it eligible for streamlined federal permitting.

ABTC said the project demonstrates continued bipartisan support for domestic critical mineral development, reflecting broader efforts to strengthen U.S. supply chains for battery materials and reduce reliance on foreign sources of lithium and other strategic resources.

According to a pre-feasibility study released in October 2025, the Tonopah Flats Lithium Project is expected to generate an after-tax net present value of approximately $2.57 billion at an 8% discount rate and achieve an internal rate of return of 21.8%. The study estimated production costs of approximately $4,307 per tonne of lithium hydroxide monohydrate, positioning the project among the more competitive proposed lithium developments in North America.

ABTC said it will continue working with the DOE as it advances the project toward commercial-scale production and seeks to expand domestic lithium refining capacity in support of the growing U.S. battery manufacturing sector.

Source: American Battery Technology

SUNSHINE Spotlight: The reinstatement of ABTC’s DOE grant restores federal backing for a commercial lithium refinery project that could strengthen domestic battery material supply chains and expand U.S. critical mineral processing capacity.