American Battery Technology gets DOE grant for second lithium-ion battery recycling facility

American Battery Technology Company (NASDAQ: ABAT) has received a $144 million grant from the U.S. Department of Energy (DOE) to construct its second commercial-scale battery recycling facility. This funding highlights the DOE’s commitment to developing a domestic sustainable energy ecosystem through advancements in recycling technologies innovation and efficient reuse of critical battery metals.

The new facility will process 100,000 tonnes of lithium-ion batteries annually, marking a significant expansion in ABTC’s capacity to recycle end-of-life materials. Designed with a throughput five times that of the company’s first plant, it reflects the growing demand for a circular supply chain to support the electric vehicle (EV), renewable energy, and consumer electronics markets.

Scaling Proprietary Recycling Technologies

ABTC’s innovative recycling methods focus on recovering high-value battery-grade materials like nickel, cobalt, manganese, and lithium hydroxide while reducing environmental impact. Unlike traditional methods that rely on high-temperature smelting or indiscriminate shredding, ABTC’s proprietary processes enable targeted chemical extraction at competitive costs.

“Our second battery recycling facility will strengthen domestic supply chains while further scaling the technologies we’ve pioneered,” said CEO Ryan Melsert. He noted that the project aligns with North American efforts to secure local supplies of critical minerals while minimizing reliance on imported materials.

The DOE’s investment recognizes the importance of creating sustainable solutions for the battery industry. The processed materials, refined to meet the strict specifications of cathode manufacturers, will be critical for supporting the clean energy transition.

Strategic Collaborations for Circular Supply Chain

American Battery Technology Company has established partnerships with major industry stakeholders to bolster its efforts. Collaborators include BASF, a leading cathode manufacturer, which will purchase the recycled battery-grade materials, and Siemens, a global engineering firm contributing technical expertise. The project also involves Clemson University’s International Center for Automotive Research and Argonne National Laboratory, furthering a comprehensive approach to developing a resilient circular supply chain for North America.

This collaborative model extends beyond the technical realm. American Battery Technology Company is committed to community-driven development, aiming to establish an equitable sustainable energy ecosystem that supports underserved communities. Through its energy equity initiatives, the project will create 1,200 construction jobs and 300 operational roles, while fostering education and workforce training programs in partnership with local institutions.

Reinventing Recycling for the Lithium-Ion Era

The second battery recycling facility is part of ABTC’s broader mission to redefine how lithium-ion batteries are recycled in the U.S. By leveraging its internally developed technologies, the company ensures that end-of-life batteries and manufacturing scrap materials are not wasted but instead reintegrated into the supply chain as high-quality inputs for new batteries.

This approach is a cornerstone of ABTC’s vision for a sustainable energy ecosystem. By scaling its operations, the company addresses two key challenges: the growing demand for critical materials in clean energy industries and the environmental consequences of inadequate recycling practices.

A Community-Focused Vision

ABTC’s efforts are rooted in collaboration with diverse partners and stakeholders. The project aligns with the South Carolina Electric Transportation Network and supports programs aimed at increasing access to opportunities in historically underserved communities. This holistic approach integrates education, government, industry, and nonprofit organizations to create long-term benefits for local populations.

As the January 1, 2025 start date for the grant approaches, American Battery Technology Company is poised to transform the landscape of battery recycling in North America. Its second facility not only strengthens the company’s leadership in recycling technologies innovation but also underscores its commitment to advancing a truly sustainable and equitable circular supply chain for the clean energy transition.