Department of Energy Halts $57 Million Grant for American Battery’s Nevada Lithium Project in Reno
American Battery Technology Co. has announced that its $57.7 million grant from the U.S. Department of Energy has been terminated. This funding was intended for a facility to manufacture battery cathode grade lithium hydroxide.
Details of the Termination
The Department of Energy’s Manufacturing Energy Supply Chain office was set to provide the significant grant. In return, American Battery Technology was expected to match this investment. As of October 9, approximately $52 million in DOE reimbursements remained available.
Company Background
Headquartered in Reno, Nevada, American Battery Technology operates five facilities throughout the state. These include:
- Headquarters in Reno
- Laboratories at the University of Nevada, Reno
- Sites at the Tahoe-Reno Industrial Center
- Operations in Fernley
- The Tonopah Flats Lithium Project in Big Smoky Valley
Reasons for Grant Termination
The grant’s cancellation follows a notice issued in May. The notice indicated that all grants under the MESC program were to undergo audits according to a DOE memorandum.
Company’s Response
In light of the termination, American Battery Technology has filed an appeal and is actively seeking dispute resolution. Despite this setback, the company remains optimistic.
Future Plans
The company has indicated it will continue with the project on schedule and without changes in scope. This year, American Battery Technology has successfully raised over $52 million from public markets.
Additionally, in April, the U.S. Export-Import Bank expressed a letter of interest for $900 million in financing. This financing is aimed at supporting the construction of the Nevada-based lithium mine and refinery.
