American Battery Tech tumbles after DoE nixes grant for lithium hydroxide project

[Lithium concept]
MF3d/iStock via Getty Images

American Battery Technology (NASDAQ:ABAT [https://seekingalpha.com/symbol/ABAT]) -24.6% post-market Wednesday after disclosing the U.S. Department of Energy terminated its grant [https://seekingalpha.com/filing/10527884] for the construction of a commercial scale facility for the manufacturing of battery cathode grade lithium hydroxide.

Under the grant, the DoE would have contributed $57.7 million towards the facility, while the company would have put in an equal amount; the company said ~$52 million of reimbursable DoE funds remained as of October 9.

American Battery (NASDAQ:ABAT [https://seekingalpha.com/symbol/ABAT]) said it has appealed the termination, but also said it has raised more than $52 million from public markets this year and intends to continue the project without changes to its timeline or scope.

In April [https://seekingalpha.com/news/4436990-american-battery-receives-loi-from-exim-bank-for-900-million-financing], American Battery (ABAT [https://seekingalpha.com/symbol/ABAT]) received a letter of interest from U.S. Export-Import bank for $900 million in financing to support construction of its Nevada-based lithium mine and refinery.

MORE ON AMERICAN BATTERY TECHNOLOGY

* American Battery Technology: Will Tonopah's Lithium Clay Turn Into A Pay Day? [https://seekingalpha.com/article/4829757-american-battery-technology-will-tonopahs-lithium-clay-turn-into-a-pay-day]
* American Battery Technology: Speculative Fervor As Trump Administration Considers Stake In Lithium Americas [https://seekingalpha.com/article/4825773-american-battery-technology-speculative-trump-administration-lithium-americas]
* American Battery: Price Goes Ballistic On No News (Rating Downgrade) [https://seekingalpha.com/article/4825261-american-battery-price-goes-ballistic-on-no-news-downgrade]