$2.57bn breakthrough: American Battery’s Tonopah Flats study positions it among America’s largest lithium mines

American Battery Technology Company (NASDAQ: ABAT) has released a milestone pre-feasibility study (PFS) for its Tonopah Flats Lithium Project in Nevada, cementing its reputation as one of the largest known lithium resources in the United States. The PFS, prepared in accordance with SEC S-K 1300 standards, outlines an after-tax net present value (NPV@8 %) of $2.57 billion, a 21.8 % internal rate of return (IRR), and a payback period of 7.5 years. It projects annual production of 30,000 tonnes of lithium hydroxide monohydrate (LHM) over a 45-year mine life, highlighting the project’s viability and scalability.

The study establishes Tonopah Flats as a cornerstone in U.S. critical-mineral independence, positioning American Battery Technology Company (ABTC) as a front-runner in domestic lithium supply. With resource upgrades, improved cost metrics, and advanced permitting, the company is accelerating toward a definitive feasibility study (DFS) and potential financing by the U.S. Export-Import Bank.

How the pre-feasibility study strengthens project economics and long-term supply confidence

The newly published PFS validates the technical and economic foundation of ABTC’s flagship project, emphasizing cost optimization and efficiency improvements since its April 2024 initial assessment. According to the report, total production costs are expected to average $4,307 per tonne LHM, reflecting a 9.2 % cost reduction. The study models a fully integrated operation—combining mining, refining, and chemical conversion facilities on-site—to minimize logistics expenses and reduce the project’s carbon intensity.

To further enhance cost control, ABTC plans to implement a behind-the-meter power generation system supported by a battery energy storage system (BESS). This design is expected to cut power costs, which represent a significant share of lithium-hydroxide production expenses. The PFS also reports a 53 % increase in measured and indicated lithium content, supported by updated drilling and geochemical modeling, bringing the project’s total measured, indicated, and inferred resource to more than 18 million tonnes of lithium carbonate equivalent (LCE).

Of this resource, 2.73 million tonnes have now been converted into proven and probable reserves, making Tonopah Flats one of the largest SEC-compliant lithium deposits in North America. The PFS also estimates that advancing to a DFS will cost approximately $5.8 million to $6.8 million, setting a clear financial pathway to the project’s next development phase.

The company’s in-house claystone-to-lithium extraction technology, developed and piloted at its multi-tonne-per-day facility in 2024, was used as the technical foundation for the study. The process is designed to recover lithium efficiently from Nevada’s fine-grained sedimentary deposits, a notoriously complex ore type that traditional brine and hard-rock methods cannot easily exploit.

What the permitting fast-track means for ABTC’s commercialization timeline and financing

Tonopah Flats’ momentum extends beyond technical validation. In 2025, the project was formally listed on the federal FAST-41 Permitting Dashboard, designating it as a critical-mineral priority under the U.S. government’s streamlined review framework. The company has already submitted all 21 required NEPA baseline studies and its Mine Plan of Operations to the Bureau of Land Management (BLM). This milestone positions ABTC to move into the Environmental Impact Statement (EIS) phase with accelerated timelines.

In April 2025, ABTC also received a Letter of Interest (LOI) from the U.S. Export-Import Bank (EXIM) for up to $900 million in potential project financing. If finalized, the facility would fund construction of both the mine and the on-site refinery, helping ABTC mitigate capital-intensity risk while retaining majority project ownership.

This dual advancement—regulatory acceleration and preliminary financing access—marks a rare alignment for a junior developer in the U.S. lithium sector. It situates ABTC among a select group of domestic producers with both government support and secured technology validation.

The PFS further notes that ABTC has completed its fourth drilling campaign at Tonopah Flats, refining geotechnical and metallurgical datasets needed for mine-plan optimization. With continued exploration and processing trials, the company aims to publish DFS results within 18 to 24 months, targeting first commercial output before the decade’s end.

Why expert sentiment views this PFS as a de-risking inflection point for U.S. lithium supply

Analysts following the critical-minerals sector have characterized the Tonopah Flats PFS as a “de-risking inflection” that converts theoretical potential into quantifiable value. By converting a portion of its resource into proven and probable reserves, ABTC transitions from an exploration-stage narrative to a bankable-project profile, appealing to institutional investors and strategic partners alike.

The cost-efficiency improvements, inclusion of on-site renewable power systems, and expanded reserve base demonstrate ABTC’s capacity to manage operational variables that often derail early-stage lithium projects. Sector specialists have observed that ABTC’s decision to integrate mining and refining on a single site mirrors broader trends seen in vertically integrated battery-metal ventures such as Albemarle’s Kings Mountain Project and Ioneer’s Rhyolite Ridge Project.

Still, experts note that the PFS does not eliminate execution risk. The next stages hinge on pilot-to-commercial scale-up of ABTC’s proprietary leaching and purification technologies. While pilot tests have yielded favorable recovery rates, full-scale continuity remains untested. In addition, lithium-price volatility and inflationary pressure on construction materials could materially affect project economics, even under favorable permitting conditions.

Equity analysts tracking ABTC’s stock emphasized that the PFS could serve as a catalyst for improved investor sentiment. Following the announcement, the company’s shares saw increased trading volume, with market participants interpreting the $2.57 billion NPV as a long-term validation of intrinsic asset value. Still, the stock remains highly sensitive to macro drivers such as electric-vehicle demand, federal critical-mineral policies, and China’s export-quota management.

How Tonopah Flats could reshape America’s lithium supply landscape by the early 2030s

The Tonopah Flats PFS reinforces a strategic narrative extending beyond ABTC’s balance sheet. The project sits at the intersection of U.S. industrial policy, clean-energy transition goals, and national-security imperatives to reduce dependence on imported lithium. With domestic demand projected to quadruple by 2035, ABTC’s Nevada-based production model aligns with policy initiatives that incentivize localized refining and downstream battery manufacturing.

Industry observers predict that if ABTC achieves its DFS targets and begins construction by 2027, Tonopah Flats could deliver the first wave of large-scale lithium hydroxide from U.S. claystone deposits by 2030. This would strengthen the resilience of supply chains supporting automakers and gigafactories, while potentially qualifying ABTC for additional Department of Energy loan programs.

ABTC’s decision to anchor its refining operations within Nevada also complements the state’s growing role as a battery-materials hub, alongside Tesla’s Gigafactory, Redwood Materials, and Ioneer. Analysts see synergy potential in localized recycling and closed-loop resource use, enhancing both environmental sustainability and economic competitiveness.

If successful, Tonopah Flats could redefine how unconventional lithium resources are commercialized—by integrating extraction, processing, and power management into a single high-efficiency model. The project’s BESS-assisted operations would lower carbon intensity while boosting energy independence, serving as a prototype for future critical-mineral developments across the U.S. Southwest.

What the $2.57 billion valuation means for American Battery’s investor appeal and long-term industry positioning

The publication of the Tonopah Flats PFS signals more than a technical milestone—it’s a strategic repositioning. ABTC has effectively bridged the gap between pilot-scale innovation and commercial feasibility, placing itself among a handful of developers capable of scaling a fully U.S.-based lithium supply chain.

From an investment perspective, the PFS metrics—especially the $2.57 billion NPV and 21.8 % IRR—reflect solid project economics that could attract long-term institutional capital. However, investors will closely watch the transition into the DFS phase, where cost escalation, technology validation, and environmental compliance will determine whether the promise translates into profitability.

As the broader lithium market stabilizes after a volatile 2024–2025 period, Tonopah Flats stands out for its combination of resource scale, integrated processing, and regulatory momentum. Should ABTC sustain progress through DFS completion and secure full project financing, it would mark a transformational moment for domestic lithium independence—and for investors seeking exposure to America’s clean-energy buildout.