DOE backs company for more domestic battery supply, enhancing U.S. electrification and critical material supply chain resilience.

Further solidifying its role in North America's circular battery metals supply chain as the world shifts to electrification, American Battery Technology Company (ABTC) has been awarded a $150 million federal grant from the U.S. Department of Energy to construct a second commercial-scale lithium-ion battery recycling facility.

In the fall of 2023, ABTC established a 137,000-square-foot lithium-ion battery recycling facility near Reno, Nevada, capable of an initial production scale of 20,000 metric tons of battery feedstock material per year.

Through this facility, ABTC produces recycled materials such as copper, aluminum, steel, a lithium intermediate, and black mass in the first phase of its process. The lithium intermediate and black mass are then refined into battery-grade materials, including lithium hydroxide, nickel, cobalt, and manganese, during the second phase.

Thanks to its rapidly advancing capabilities and demonstrated success, ABTC's pioneering battery recycling and manufacturing technologies have garnered significant support from both private and public sectors, resulting in multiple rounds of federal funding and tax credits.

Notably, the company received a $20 million grant in 2022 from DOE to optimize and commercialize its recycling technologies, followed by two advanced energy project tax credits totaling $60 million in 2024.

This strong backing underscores ABTC's role in building a domestic circular supply chain for critical battery materials, which is further highlighted by the recent $150 million DOE grant for the second facility.

"We are extremely honored to be selected for this government investment to further expand our domestic battery recycling operations, and after having gone through nearly one-year of technical and economic evaluation, we appreciate the level of diligence that the government employed in making this decision," said American Battery Technology Company CEO Ryan Melsert. "We are greatly appreciative of the confidence and support we have received from our partners throughout this process and are energized to move forward with our feedstock supply, product offtake, and strategic stakeholders in this critical expansion of our domestic capabilities."

Designed to process up to 100,000 metric tons of battery materials annually, this new facility is a significant step in ABTC's commitment to creating a domestic closed-loop battery metals supply chain, contributing substantially to North America's transition to electrification.

This expansion also aligns with national goals to reduce reliance on foreign sources for critical battery materials while emphasizing environmental sustainability and creating a circular manufacturing ecosystem, ensuring a steady supply of battery metals from production to recycling.

By employing its unique de-manufacturing and hydrometallurgical recycling methods, ABTC aims to minimize waste and emissions in an approach that not only increases the yield of valuable battery-grade materials but also contributes to a more sustainable circular economy compared to traditional smelting and shredding.

During the construction and operation of its new recycling facility, ABTC will employ a proactive, community-driven engagement model to build an energy equity, sustainable circular manufacturing ecosystem that aims to create 1,200 construction jobs and 300 operations jobs.

The company will work in direct partnership between communities, educational institutions, industry, government, the national laboratory system, and its workforce to support equitable and sustainable initiatives that benefit and strengthen local communities, including underserved communities that have historically been left behind.

ABTC is partnering with government entities and local educational institutions, such as Argonne National Laboratory's Sustainable Transportation Education and Partnerships (STEP) department and Clemson University, to create career pathways in battery recycling and establish a talent pipeline for the domestic battery recycling industry.

As the company has now completed the technical and economic evaluations and has been selected for this competitive grant award, it will next enter the grant award contracting phase of this process with an expected project kickoff in 2025.