DOE Terminates Lithium Refinery Grant for American Battery Technology Company

$57M DOE Grant Revoked Amid National Funding Review

The U.S. Department of Energy (DOE) has revoked a $57 million grant to American Battery Technology Company (ABTC). The funding was originally awarded for ABTC’s lithium hydroxide refinery project in Nevada.

Announced in October 2022, the grant was intended to support a $115 million commercial-scale facility. ABTC planned to build the refinery in collaboration with DuPont Water Solutions, the University of Nevada, Reno, and Argonne National Laboratory.

Headquartered in Reno, Nevada, ABTC confirmed on October 9 that it received the official termination notice. The company has appealed and is now pursuing dispute resolution through DOE channels.

This action is part of a broader DOE audit launched in May. The agency is reviewing billions in clean energy grants awarded under the Biden administration.

Despite the loss of funding, ABTC says it will stay on course. “We remain steadfast in our mission,” said Tiffiany Moehring, ABTC’s head of communications. She emphasized the company’s focus on domestic battery metal production and sustainable tech.

Tonopah Flats Project Advances Without DOE Support

Although the DOE funding was withdrawn, ABTC is moving forward with its Tonopah Flats Lithium Project. The company recently completed a positive prefeasibility study for the site.

Tonopah Flats spans more than 10,000 acres of lithium-rich claystone deposits. ABTC’s proprietary extraction process avoids harsh chemicals and supports cleaner lithium production.

The company aims to produce battery-grade lithium hydroxide from these sedimentary resources. This technology has been under development for over three years.

ABTC believes this approach strengthens the U.S. critical mineral supply chain. It also aligns with growing demand for domestic battery material sources.

After the DOE cancellation, ABTC told Bloomberg the refinery is still expected to be completed by late 2027. In the meantime, the company has raised $52 million from public markets since the audit began.

SuperMetalPrice Commentary:

The DOE’s decision to cancel the ABTC grant reflects growing scrutiny of federal energy funding. However, ABTC’s commitment to continue its lithium refinery project shows strong private-sector momentum. The Tonopah Flats Lithium Project remains a critical piece of the U.S. effort to localize battery material production. As ABTC pushes forward, its success will depend on balancing technical innovation, regulatory risk, and investor trust in a competitive and strategic market.