American Battery Technology Company (ABTC) has successfully appealed a decision by the US Department of Energy (DOE), resulting in the full reinstatement of a federal grant supporting its Tonopah Flats lithium project (TFLP) in Nevada.
The grant will help fund the first phase of a commercial-scale lithium refinery designed to produce battery-grade lithium hydroxide. The decision marks a major milestone for the company as it advances domestic critical mineral processing capacity in the United States.
Topic Snapshot
- DOE grant fully reinstated after a successful appeal
- Project supports a commercial-scale lithium refinery in Nevada
- Refinery development is valued at approximately $115 million
- Initial production capacity planned at 5,000 tonnes per year
- No reduction in awarded funding or project milestones
- Tonopah Flats received priority permitting status in 2025
Grant Reinstated in Full
The DOE has restored the grant award in its entirety following a detailed review process.
Key outcomes include:
- Full restoration of awarded funding
- No changes to technical milestones
- No changes to commercial targets
- Updated project schedule reflecting review delays
The reinstatement allows the company to continue development without losing previously approved federal support.
Project Supports Domestic Lithium Processing
The grant is tied to the construction of the first phase of ABTC’s commercial lithium refinery at the Tonopah Flats lithium project.
The planned facility will initially produce:
- 5,000 tonnes per year of battery-grade lithium hydroxide
Lithium hydroxide is a critical material used in the manufacturing of:
- Electric vehicle batteries
- Energy storage systems
- Consumer electronics
- Advanced industrial technologies
Appeal Followed Grant Termination
The project was originally selected for funding in October 2022 through a competitive five-year DOE programme.
However, in October 2025, ABTC received notice that its grant was being terminated alongside hundreds of other DOE-funded projects.
The company immediately filed an appeal and entered the DOE’s Informal Dispute Resolution (IDR) process.
Over several months, the project underwent:
- Technical reviews
- Commercial evaluations
- Performance assessments
- Final dispute resolution meetings
Following the review, the DOE concluded that continued support for the project was justified.
Project Met All Performance Requirements
According to ABTC, the company successfully completed all required milestones during the first two years of the grant programme.
Chief Executive Officer Ryan Melsert stated that the DOE determined the project had met all contracted technical and commercial obligations.
The successful review helped demonstrate the project’s progress and importance to the US critical minerals sector.
Priority Status Supports Faster Development
In June 2025, the Tonopah Flats lithium project received additional federal recognition.
The project was selected by:
- The National Energy Dominance Council
- The FAST-41 Permitting Council
This designation identified the project as a critical mineral priority initiative eligible for streamlined federal permitting processes.
Faster permitting can help reduce development timelines and improve project certainty.
Federal Support Has Spanned Multiple Administrations
The Tonopah Flats project has received support through several phases of federal programmes.
Development milestones include:
- Early-stage technology support through the DOE’s Advanced Materials and Manufacturing Technologies Office
- Commercial refinery funding through the DOE’s Manufacturing Energy Supply Chain Office
- Grant reinstatement following review under the current administration
This continued support reflects the strategic importance of domestic lithium production and processing.
Strengthening US Critical Mineral Supply Chains
ABTC’s refinery project is part of a broader effort to build domestic supply chains for battery materials.
The facility aims to help:
- Reduce reliance on imported lithium products
- Expand US battery material production
- Support electric vehicle manufacturing
- Strengthen energy security initiatives
As demand for lithium continues to grow, refining capacity is becoming an increasingly important part of the North American battery industry.
Commercial Refinery Represents Next Growth Phase
The company previously demonstrated its processing technology at an integrated demonstration facility supported by federal funding.
With those technologies validated, ABTC is now focused on scaling operations to commercial production.
Management believes the refinery will play an important role in supplying battery-grade lithium materials to the growing US clean energy and transportation sectors.
Closing
The reinstatement of the DOE grant provides a significant boost for the Tonopah Flats lithium project and American Battery Technology’s commercial refinery plans. With funding restored, permitting support in place, and key milestones already achieved, the company is positioned to continue advancing one of the United States’ emerging lithium processing projects.
