American Battery Technology (NASDAQ:ABAT) reported a more than 400% increase in fiscal 2026 revenue to $21.7 million, driven by higher throughput at its first lithium-ion battery recycling facility, expanded byproduct manufacturing and improved product pricing, Chief Executive Officer and Chief Technology Officer Ryan Melsert said during the company’s full-year earnings call.
Melsert said the company’s cost of goods sold rose about 67% from the prior year, a slower rate than revenue growth, which he attributed to economies of scale and operational improvements at the recycling plant. On a cash basis, operational spending at the facility declined approximately 16% despite increased throughput, he said.
As of the end of June, the company had approximately $49.5 million in cash and a total asset base of about $133 million, Melsert said. He added that American Battery Technology had eliminated its long-term outstanding debt by the end of fiscal 2026.
Recycling Operations Expand
American Battery Technology’s first recycling facility has a design capacity of roughly 20,000 tons per year. The plant processes lithium-ion battery feedstock from grid-scale energy-storage systems, electric vehicles, battery-cell manufacturing and consumer electronics, Melsert said.
He said the company was selected for what he described as one of the country’s largest lithium-ion battery cleanup projects, involving grid-scale batteries that must be recycled following incidents. The company also formed a partnership with The Battery Network, formerly Call2Recycle, to collect consumer batteries across the country and process them at its facility.
American Battery Technology is also advancing plans for a second recycling plant in the Southeast U.S. designed to process about 100,000 tons of batteries annually. The company continues to work with the U.S. Department of Energy on a $150 million grant supporting construction and deployment of that facility, Melsert said.
Separately, the company has a $10 million DOE grant intended to help commercialize three next-generation recycling technologies that it has previously tested at laboratory and bench scale. The company is working to build commercial-scale versions for integration into its recycling operations.
Black Mass Export Directive Creates Near-Term Storage Need
Melsert noted that the U.S. Department of Commerce recently issued a directive that effectively bans black mass exports unless a company receives an exception or adjustment from the department. Black mass is an intermediate material produced from battery recycling.
The company has submitted an exception request and has responded to follow-up questions and requests for information from Commerce, he said. However, Melsert said there has been no formal decision on the request.
For now, American Battery Technology continues to sell other recycling byproducts while storing black mass at its facility pending a resolution. Melsert said the company is working with the Commerce Department, with support from the DOE and other federal agencies.
Tonopah Lithium Project Advances Through Permitting
Beyond recycling, American Battery Technology is developing its Tonopah Flats Lithium Project west of Tonopah, Nevada, where it plans a 30,000-ton-per-year mine and refinery to produce battery-grade lithium hydroxide from lithium-bearing claystone.
Melsert said the company’s pre-feasibility study, published last fall, identified the potential to produce approximately 21.3 million tons of lithium hydroxide from resources at the site. That figure includes about 2.7 million tons classified as proven or probable reserves, he said.
A DOE grant related to the project was canceled last fall but was subsequently reinstated after the company appealed the decision, according to Melsert. He said the project is proceeding with the same funding and milestones as before the termination.
The Bureau of Land Management recently accepted the company’s plan of operations after completion of baseline studies, allowing the project to move from the pre-NEPA phase into the full National Environmental Policy Act review process. The project was also selected as a priority project by the National Energy Dominance Council and FAST-41 Permitting Council, which Melsert said is intended to streamline coordination among federal agencies.
The company has built and operated an integrated demonstration facility and is producing batches of battery-grade lithium hydroxide for delivery to customers undergoing product qualification, Melsert said.
About American Battery Technology (NASDAQ:ABAT)
American Battery Technology Company (NASDAQ: ABAT) is a U.S.-based battery materials company focused on producing and recycling lithium and other materials used in lithium-ion batteries. The company develops technologies intended to support a domestic, circular battery supply chain for electric vehicles, grid storage systems, consumer electronics and other applications.
Its business includes lithium-ion battery recycling, with processes designed to recover battery metals and produce battery-grade materials from end-of-life batteries and manufacturing scrap.
