Company commences battery recycling
operations and the manufacturing of recycled products for near-term
revenue generation and continues the development of its primary
battery metals resource
- Commencement of operations at commercial lithium-ion battery
recycling facility, and successful manufacturing of recycled
product for revenue generation;
- Completion of third Tonopah Flats Lithium Project drill
program, intended to improve confidence in the mineral resource
estimate and upgrade the third-party analysis to include Measured
and Inferred classifications;
- Contracting of additional grant awards from U.S. Department of
Energy, bringing total to approximately $70
million of federal projects being executed concurrently;
and
- Company listed and began trading under the stock symbol ABAT on
the Nasdaq Exchange.
RENO,
Nev., Nov. 15, 2023 /PRNewswire/ -- American
Battery Technology Company (ABTC) (NASDAQ: ABAT), an integrated
critical battery materials company that is commercializing its
technologies for both primary battery minerals manufacturing and
secondary minerals lithium-ion battery recycling, announced its
first quarter fiscal year (FY) 2024 financial results, for the
period ending September 30,
2023.
The American Battery Technology Company
commences lithium-ion battery recycling operations.
The company continues to implement its market-matched strategic
growth trajectory for its lithium-ion battery recycling operations
and its diversified business model by also developing and
constructing its primary lithium-bearing resource and lithium
hydroxide refinery near Tonopah,
Nevada to produce domestic battery metal products.
This quarter, ABTC noted key milestones towards revenue-generating
operations.
Commencement of Commercial Battery Recycling
Operations
ABTC has designed, constructed, commissioned, and
now begun operations at its first commercial-scale lithium-ion
battery recycling facility with a nominal throughput of 20,000
metric tonnes per year when fully ramped. While other prospective
battery recyclers within the U.S. have attempted to construct very
large facilities that require substantial amounts of capital and
battery feed materials to be operational, ABTC recognized the risks
associated with this early on. The company strategically chose the
design of its first facility to be large enough to demonstrate the
full set of integrated recycling processes at commercial scale
while still aligning with the market scale of recycled feedstock at
this early stage in the domestic-U.S. battery industry.
A single battery Gigafactory with a manufacturing capacity of
30-40 GWhr/yr of batteries tends to produce 20,000 – 30,000 metric
tonnes per year of waste battery materials. Not coincidentally,
ABTC as part of its right-sized phased growth approach, has
designed its first commercial recycling facility to match the
typical average of battery waste that a single Gigafactory
produces. Currently, there is one battery Gigafactory in
operation in the U.S. (near Sparks,
Nevada) and over twenty additional battery Gigafactories
currently under development and construction.
The ABTC team is comprised primarily of engineers, construction
managers, and operators of large-scale battery manufacturing
facilities, and as such has significant experience managing large
construction projects and bringing first-of-kind technologies to
market. The ABTC team has successfully managed its internal
team and external contractors to bring this first commercial-scale
recycling facility to operations in a compressed timeline and under
the estimated budget.
ABTC's strategically sized operations, prime location in the
Tahoe-Reno Industrial Center (TRIC), and in-house project
development expertise greatly de-risked this project and ultimately
led to a successful commencement of operations. Securing
battery recycling feedstock from sources such as the recently
announced strategic partnership with BASF, and the company's
participation in a consumer-facing e-waste pilot program sponsored
by FedEx, the ABTC recycling facility has now manufactured recycled
products that are able to be sold for revenue generating operations
through ABTC's already contracted offtake and marketing
agreements.
Tonopah Flats Lithium Project – Third Drill
Program
ABTC has completed its third exploration drill
program at its Tonopah Flats Lithium Project in Big Smoky
Valley, Nevada. This program
included both infill and step-out drill programs, and consisted of
8 holes totaling approximately 6,700 feet of sampling and at depths
of over 1,400 feet, one of the deepest lithium sampling activities
in the region. To date, the company has shared third-party assay
results for 6 of the 8 holes, with results further supporting the
development of this domestic resource towards upgraded Measured and
Indicated classifications.
Based on a third-party audited SK-1300-compliant Maiden
Resource Report published in February
2023, and before the integration of the data from this third
drill program, the Tonopah Flats Lithium Project was one of the
largest known lithium resources in the
United States, containing approximately 15.8 million tons of
Inferred economically accessible lithium on a carbonate equivalent
basis.
ABTC intends to publish an updated resource report that includes
the data from this third drill program in the coming weeks.
Contracting of Additional U.S. Department of Energy
Grants
ABTC previously had two U.S. Department of Energy (DOE) grants
under contract, and recently completed the contracting of two
additional U.S. DOE grant awards. These four U.S. DOE
grant-supported projects are now being executed in parallel, and
total approximately $70 million in
contracted federal dollars to advance the robust development of
ABTC's battery recycling and primary lithium manufacturing
operations.
These grant awards operate on a cost reimbursable basis, with a
portion of expenses reimbursed to ABTC as such expenses are
incurred for internal labor hours, equipment, supplies, contracted
services, or other expenses. With these four grant projects
operating in parallel, a substantial portion of all of ABTC's
operating and capital expenses are covered.
Listing on Nasdaq Exchange
ABTC listed its
shares and began trading on Nasdaq on September 21, 2023. The listing of its shares on
this exchange represents a long-term strategic move for the
company, allowing it to expand its reach in the capital markets and
support the company's next phases of growth as it works to address
the immense shortfall of low-cost and low-environmental impact
domestically manufactured battery critical materials.
Financial highlights from first quarter FY2024
include:
- On August 21, 2023, the company
finalized the purchase of its commercial-scale, lithium-ion battery
recycling facility located in TRIC at 2500 Peru Drive, McCarran, Nevada.
- As of September 30, 2023, the
company had total cash on hand of $5.4
million. The company is currently manufacturing recycled
products for revenue, and in addition to the federal government
grant income which supports payroll coverage and other expenses,
the company has the potential to access additional capital through
the High Trail and Tysadco financing transactions to support growth
plans..Cash used for the acquisition of property, construction,
equipment, and water rights for the three months ended September 30, 2023 was $7.3 million. Cash used in the same period of the
prior year totaled $4.1 million for
water rights and equipment.
- Cash used in operations for the three months ended September 30, 2023 was $4.8 million, up $0.7
million year–over–year compared to the three months ended
September 30, 2022.
- Total operating costs for the three months ended September 30, 2023 were $6.4 million, up $3.8
million year–over–year, largely due to increased hiring
related to R&D and exploration activities compared to the three
months ended September 30, 2022.
- The company recorded $2.2 million
in research and development costs for the three months ended
September 30, 2023, an increase of
$1.9 million when compared to the
same period of the prior year. The company recorded an offset to
research and development costs of $0.5
million and $0.3 million for
federal grant funds recognized for the three months ended
September 30, 2023 and 2022,
respectively.
About American Battery Technology Company
American Battery Technology Company (ABTC), headquartered in
Reno, Nevada, has pioneered
first-of-kind technologies to unlock domestically manufactured and
recycled battery metals critically needed to help meet the
significant demand from the electric vehicle, stationary storage,
and consumer electronics industries. Committed to a circular
supply chain for battery metals, ABTC works to continually innovate
and master new battery metals technologies that power a global
transition to electrification and the future of sustainable
energy.
Inferred Resource
Inferred mineral resource is that part of a mineral resource for
which quantity and grade or quality are estimated on the basis of
limited geological evidence and sampling. The level of geological
uncertainty associated with an inferred mineral resource is too
high to apply relevant technical and economic factors likely to
influence the prospects of economic extraction in a manner useful
for evaluation of economic viability. Because an inferred mineral
resource has the lowest level of geological confidence of all
mineral resources, which prevents the application of the modifying
factors in a manner useful for evaluation of economic viability, an
inferred mineral resource may not be considered when assessing the
economic viability of a mining project and may not be converted to
a mineral reserve.
Indicated Resource
An Indicated Mineral Resource
is that part of a mineral resource for which quantity, grade or
quality, densities, shape and physical characteristics are
estimated with sufficient confidence to allow the application of
Modifying Factors in sufficient detail to support mine planning and
evaluation of the economic viability of the deposit. Geological
evidence is derived from adequately detailed and reliable
exploration, sampling and testing and is sufficient to assume
geological and grade or quality continuity between points of
observation. An Indicated Mineral Resource has a lower level of
confidence than that applying to a Measured Mineral Resource and
may only be converted to a Probable Mineral Reserve.
Measured Resource
A Measured Mineral Resource is
that part of a Mineral Resource for which quantity, grade or
quality, densities, shape, and physical characteristics are
estimated with confidence sufficient to allow the application of
Modifying Factors to support detailed mine planning and final
evaluation of the economic viability of the deposit. Geological
evidence is derived from detailed and reliable exploration,
sampling and testing and is sufficient to confirm geological and
grade or quality continuity between points of observation. A
Measured Mineral Resource has a higher level of confidence than
that applying to either an Indicated Mineral Resource or an
Inferred Mineral Resource. It may be converted to a Proven Mineral
Reserve or to a Probable Mineral Reserve.
Forward-Looking Statements
This press release contains
"forward-looking statements" within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. All statements, other than statements of historical fact, are
"forward-looking statements." Although the American Battery
Technology Company's (the "Company") management believes that such
forward-looking statements are reasonable, it cannot guarantee that
such expectations are, or will be, correct. These forward-looking
statements involve a number of risks and uncertainties, which could
cause the Company's future results to differ materially from those
anticipated. Potential risks and uncertainties include, among
others, the inability to source and recycle lithium-ion batteries
and lithium-ion battery manufacturing scrap economically and
efficiently; the inability to materially increase recycling
capacity; risks and uncertainties related to the Company's ability
to continue as a going concern; changes in the volume or
composition of feedstock materials processed at the Company's
facilities; interpretations or reinterpretations of geologic
information, unfavorable exploration results, inability to obtain
permits required for future exploration, development or production,
general economic conditions and conditions affecting the industries
in which the Company operates; the uncertainty of regulatory
requirements and approvals; fluctuating mineral and commodity
prices, final investment approval and the ability to obtain
necessary financing on acceptable terms or at all. Additional
information regarding the factors that may cause actual results to
differ materially from these forward-looking statements is
available in the Company's filings with the Securities and Exchange
Commission, including the Annual Report on Form 10-K for the year
ended June 30, 2023. The Company
assumes no obligation to update any of the information contained or
referenced in this press release.
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SOURCE American Battery Technology Company