American Battery Technology Company (ABTC) Announces Strong Q2 FY2024 Financial Results

American Battery Technology Company (ABTC), a leading integrated critical battery materials company listed on NASDAQ under the symbol ABAT, disclosed its second-quarter fiscal year (FY) 2024 financial results, covering the period concluding on December 31, 2023.

Strategic Facility Acquisition and Expansion

In August 2023, ABTC successfully acquired a move-in ready, unoccupied commercial-scale industrial facility situated in the Tahoe-Reno Industrial Center (TRIC). The facility was secured for the purpose of implementing ABTC's groundbreaking integrated lithium-ion battery recycling technologies. Subsequently, in October 2023, ABTC completed the construction and installation of the initial phase of its battery recycling systems at the TRIC facility. This marked the commencement of processing commercial-scale quantities of battery materials into sellable recycled battery metal products.

Operational Expansion and Industry Qualifications

ABTC has been progressively increasing throughput at the TRIC facility and is in the process of adding a second shift of operations to further elevate the rate of recycling operations. The company's battery recycling operations have successfully undergone audit, environmental reviews, and qualification processes with leading global automotive and battery manufacturers. Currently, ABTC is actively negotiating feedstock agreements that could represent several years' worth of operations at the TRIC facility.

Simultaneously, ABTC, anticipating long-term feedstock agreements, is coordinating with strategic partners to select the site for its next commercial battery recycling facility. This forward-looking approach aligns with the company's commitment to sustainability and innovation in the battery materials industry.

Government Grants and Financial Performance

ABTC has secured prime agreement contracts for two significant projects funded by the U.S. Department of Energy (DOE). The first, a $115 million project for a commercial-scale lithium hydroxide refinery, commenced on September 1, 2023. The second, a $20 million project for next-generation advanced battery recycling technologies, began on October 1, 2023. Notably, government grant funding increased to $1.7 million for the fiscal year-to-date six months ended December 31, 2023, compared to $0.4 million during the same period in the prior year.

Financial Metrics and Investments

Cash used for investments in property, plant, equipment, mineral rights, and water rights for the fiscal year-to-date six months ended December 31, 2023, amounted to $10.9 million, a slight increase from the $10.2 million used in the corresponding period of the prior year. Cash used in operations for the same period remained consistent at $7.4 million, reflecting prudent financial management.

On August 29, 2023, ABTC entered into an agreement to issue a new series of senior secured convertible notes for up to $51 million. As of now, $25 million of these notes have been successfully issued, reflecting investor confidence in ABTC's growth prospects.

Continued Momentum Towards Full Battery Recycling Operations

ABTC is actively advancing its battery recycling systems toward fully-ramped operations at its first commercial-scale lithium-ion battery recycling facility. The facility, with a processing capacity exceeding 20,000 metric tonnes per year, has already generated a substantial inventory of recycled battery metal products for sale. Strategic partnerships, such as the one with BASF, further underscore ABTC's commitment to sustainable battery metal solutions.

Concurrent Commercialization Strategy

In a unique approach, ABTC is concurrently commercializing both its battery recycling operations and battery-grade lithium hydroxide refining from primary claystone. The company's in-house team, consisting of experts in chemistry, metallurgy, engineering, construction management, and large-scale battery manufacturing, positions ABTC as a leader in navigating complex projects from design to commercialization. The fiscal year-to-date six months ended December 31, 2023, saw a $5.3 million investment in research and development costs, reflecting a $3.3 million increase compared to the same period in the prior year.

About American Battery Technology Company (ABTC)

Headquartered in Reno, Nevada, ABTC has pioneered first-of-kind technologies to unlock domestically manufactured and recycled battery metals. These metals play a crucial role in meeting the escalating demand from the electric vehicle, stationary storage, and consumer electronics industries. Committed to a circular supply chain for battery metals, ABTC continues to innovate and master new battery technologies, contributing to the global transition to electrification and sustainable energy.