American Battery Tech Advances Massive US Lithium Project with 21.2M Ton Resource Discovery

Posted by Admin January 21, 2025 Tech

American Battery Technology Company (NASDAQ: ABAT) has initiated a new drill program to accelerate the commercialization of its Tonopah Flats Lithium Project (TFLP). According to their April 2024 Amended Initial Assessment, TFLP contains approximately 21.2 million tons of economically accessible lithium, making it one of the largest known lithium resources in the United States. Battery-grade lithium hydroxide can be manufactured at a production cost of $4,302/ton.

The company has engaged Truth North Drilling for core sample collections and Barr Engineering for mine plan development and prefeasibility study (PFS) publication. ABAT has also partnered with Black & Veatch for the engineering and construction of a 30,000 tonnes per year commercial-scale lithium hydroxide refinery at the TFLP site. The company has already successfully produced battery-grade lithium hydroxide from its TFLP claystone resource using its demonstration-scale facility.

Positive

Owns one of the largest lithium resources in the US with 21.2M tons of economically accessible lithium

Competitive production cost of $4,302/ton for battery-grade lithium hydroxide

Successfully demonstrated lithium hydroxide production at demonstration-scale facility

Secured partnership with Black & Veatch for 30,000 tonnes/year commercial refinery construction

Negative

Project still in early stages, requiring completion of prefeasibility study

Relies on unconventional claystone material versus traditional lithium sources

Insights

The initiation of this drill program marks a critical milestone in validating ABAT’s 21.2 million tons LCE resource. The planned geotechnical drilling will serve multiple strategic purposes: defining optimal pit structure, enhancing the 3D resource model resolution and potentially expanding the resource base in the southwest claim block. The engagement of Truth North Drilling for core collection and Barr Engineering for mine planning demonstrates a methodical approach to resource development.

The projected production cost of $4,302 per ton of battery-grade lithium hydroxide is particularly competitive in current market conditions. This positions ABAT favorably against traditional lithium sources, especially considering the 30,000-tonne annual production capacity planned with Black & Veatch. The company’s innovative claystone extraction technology could revolutionize domestic lithium production, addressing a critical gap in U.S. battery material supply chains.

ABAT’s technological breakthrough in processing unconventional lithium-rich claystone represents a significant advancement in domestic lithium production. Unlike conventional lithium sources – spodumene from Australia or brines from South America – this Nevada-based resource utilizes abundant domestic claystone deposits. The successful demonstration of battery-grade lithium hydroxide production at the pilot scale validates the technical feasibility of their proprietary process.

The progression from Initial Assessment to Pre-Feasibility Study (PFS) is important for commercialization. The PFS will provide higher confidence levels in resource estimates and economic viability, essential for attracting investment and advancing toward full-scale production. The partnership with Black & Veatch for the commercial refinery design adds credibility to the scaling strategy.

This development carries substantial implications for the U.S. battery supply chain and national security interests. With current global lithium markets dominated by foreign sources, ABAT’s project could significantly reduce U.S. dependency on imported lithium. The 30,000 tonnes per year production target would represent a meaningful contribution to domestic supply.

For investors, the progression to PFS stage typically reduces project risk and increases asset value. The engagement of established firms like Barr Engineering and Black & Veatch adds credibility and execution certainty. The competitive production cost of $4,302/ton positions ABAT well in the market, especially given current lithium hydroxide prices and growing demand from EV manufacturers seeking domestic supply sources.

01/21/2025 – 08:32 AM

Accelerated commercialization and scale-up of the Tonopah Flats Lithium Project aims to aid the onshoring an American lithium resource to reinforce supply chain stabilization, national security, and create jobs

Reno, Nev., Jan. 21, 2025 (GLOBE NEWSWIRE) — American Battery Technology Company (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, has commenced a new drill program aimed to accelerate the commercialization of its Tonopah Flats Lithium Project (TFLP).

In April 2024, American Battery Technology Company (ABTC) published its Amended Initial Assessment, which concluded that the TFLP is one of the largest known lithium resources in the United States, containing approximately 21.2 million tons of economically accessible lithium (LCE), and that commercial quantities of battery grade lithium hydroxide could be manufactured at a production cost of $4,302/ton.

The next step in accelerating the commercialization of this resource is the completion and publication of a prefeasibility study (PFS). A critical operation of the PFS is performing this drill program to provide the geotechnical data to define the structural mine pit shape, to increase the resolution of the 3D resource model, and to add to the understanding of the high-grade continuity within the proposed pit.

This drill program also includes core sample collections which will be assayed and characterized to further define the resource to the previously unexplored southwest section of the claim block and to work to increase the size of the overall lithium resource.

The company has selected and engaged Truth North Drilling of Tonopah, Nevada for the core sample collections. Additionally, Barr Engineering, a nationally recognized, top-tier mining engineering firm has been engaged to support the company in the design and development of its ‘mine plan of operation’ and the publication of its PFS for the TFLP.

ABTC has already successfully manufactured battery grade lithium hydroxide material from its TFLP claystone resource utilizing its internally developed integrated demonstration-scale facility. ABTC has engaged one of the premier global construction firms, Black & Veatch, for the engineering, procurement, and construction of a 30,000 tonnes per year commercial-scale lithium hydroxide refinery to be constructed directly at the TFLP resource.

Throughout the world lithium products are generally manufactured from conventional feedstock resources, which include hard rock spodumene materials primarily from western Australia and lithium-rich brines primarily from South America, however, the U.S. does not have large quantities of these conventional resources. As a result, in order to significantly increase domestic-U.S. production of battery grade lithium products, ABTC has developed its own technologies to be able to access the lithium within unconventional lithium-rich claystone material that is found in central Nevada to manufacture these battery grade lithium materials in a low cost and low impact fashion.

Pre-Feasibility Study
A Preliminary Feasibility Study (or Pre-Feasibility Study) is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a preferred mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product. A Pre-Feasibility Study includes a financial analysis based on reasonable assumptions, based on appropriate testing, about the modifying factors and the evaluation of any other relevant factors that are sufficient for a qualified person to determine if all or part of the Indicated and Measured Mineral Resources may be converted to mineral reserves at the time of reporting. The financial analysis must have the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable. A Pre-Feasibility Study is less comprehensive and results in a lower confidence level than a feasibility study. A Pre-Feasibility study is more comprehensive and results in a higher confidence level than an Initial Assessment.

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.

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, risks and uncertainties related to the Company’s ability to continue as a going concern; 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, 2024. The Company assumes no obligation to update any of the information contained or referenced in this press release.

American Battery Technology Company’s Tonopah Flats Lithium Project

FAQ

What is the size of ABAT’s Tonopah Flats Lithium Project resource?

According to ABAT’s April 2024 Amended Initial Assessment, the Tonopah Flats Lithium Project contains approximately 21.2 million tons of economically accessible lithium (LCE), making it one of the largest known lithium resources in the United States.

What is ABAT’s projected production cost for lithium hydroxide?

ABAT projects it can manufacture battery-grade lithium hydroxide at a production cost of $4,302 per ton at the Tonopah Flats Lithium Project.

What is the planned production capacity of ABAT’s commercial refinery?

ABAT is planning to construct a 30,000 tonnes per year commercial-scale lithium hydroxide refinery at the Tonopah Flats Lithium Project site.

Which companies has ABAT partnered with for the Tonopah Flats project development?

ABAT has partnered with Truth North Drilling for core sample collections, Barr Engineering for mine plan development and prefeasibility study, and Black & Veatch for the engineering and construction of the commercial refinery.