AMERICAN BATTERY TECHNOLOGY FY26 earnings call ABAT

American Battery Technology Company reported a substantial increase in revenue, growing over 400% to $21.7 million in fiscal year 2026 compared to the prior year. This growth was accompanied by only a moderate 67% increase in cost of goods sold, reflecting significant economies of scale and operational efficiencies. The company achieved its first annual adjusted gross profit of $1.7 million, a notable turnaround from a $6.2 million loss in the previous year. Cash spend in operations decreased by approximately 16% despite a fourfold increase in throughput, further highlighting efficiency gains. The company's cash balance increased to $49.5 million by the end of June, with total assets reaching $133 million, and it successfully extinguished all long-term outstanding debt.

The company significantly ramped up operations at its first battery recycling facility, which has a design rate of approximately 20,000 tonnes per year. Revenue growth in this segment was driven by increased throughput, additional manufacturing of byproducts, and improved product pricing. Feedstock for the recycling plant comes from diverse sources, including grid-scale battery energy storage systems, electric vehicles, battery cell manufacturing, and consumer electronics. ABTC is also developing a second recycling plant in the Southeast U.S., designed to process about 100,000 tonnes per year, supported by a $150 million grant from the U.S. Department of Energy.

Significant achievements were made in the claystone lithium business, including the publication of a pre-feasibility study demonstrating the technical and financial viability of the system. The project boasts an estimated 21.3 million tonnes of lithium hydroxide resource, with 2.7 million tonnes classified as proven or probable reserves. The company is developing a 30,000 tonne per year mine and refinery near Tonopah, Nevada. A previously canceled Department of Energy grant for this project was successfully appealed and fully reinstated, ensuring continued federal support for the first processing train. The project is also advancing through the NEPA permitting process, having completed baseline studies and received BLM certification for its plan of operations, moving into the full NEPA phase.

American Battery Technology Company maintains close partnerships with various U.S. government entities, particularly the Department of Energy, which supports multiple projects in both battery recycling and claystone lithium refining. The company hosted DOE leadership for site visits to its operating recycling plant and integrated claystone demonstration facility. Furthermore, the Tonopah project was selected by President Trump's National Energy Dominance Council and the FAST-41 Permitting Council as a priority project, which is expected to streamline federal permitting processes by combining efforts across multiple agencies.

A recent directive from the Department of Commerce has effectively banned the export of black mass unless an exception or adjustment is obtained. ABTC has submitted an exception request and is actively engaging with the Department of Commerce, along with support from the Department of Energy and other federal agencies. In the short term, while awaiting a formal response, the company is storing its black mass product at its facility, though it continues to sell other byproducts from its recycling operations.

The company is also leveraging a $10 million grant from the Department of Energy to commercialize next-generation recycling technologies. Three such technologies, previously proven at laboratory and bench scales, are now being scaled up to commercial implementations for integration into ABTC's recycling facilities. An integrated demonstration facility continues to produce large-scale batches of battery-grade lithium hydroxide from claystone, which are being delivered to customers for evaluation and qualification.