American Battery Technology Reports Record Gross Profit and Restored $57 Million DOE Grant

Key Points

• ABTC reported Q4 FY2026 revenue of $8.2 million, up 5.1% from the prior quarter.
• Quarterly gross profit reached a company record of $1.3 million, an 86% sequential increase.
• Cost of goods sold declined 2.8% quarter over quarter to $6.9 million.
• The Department of Energy reinstated a $57 million grant supporting ABTC’s Tonopah Flats Lithium Project in Nevada.
• The planned first lithium-refinery processing train is expected to cost approximately $115 million.
• ABTC ended the quarter with $50.3 million in cash and no outstanding debt.

 American Battery Technology Company (NASDAQ: ABAT) reported its highest quarterly gross profit to date in the fourth quarter of fiscal 2026, reflecting improving efficiency at its Nevada battery-recycling facility. The company also received reinstatement of a $57 million U.S. Department of Energy grant for its planned lithium-refinery project, providing a significant boost to its domestic critical-minerals growth strategy.

 Record Fourth-Quarter Results Highlight Growing Recycling-Facility Efficiency

ABTC generated $8.2 million in revenue for the quarter ended June 30, 2026, compared with $7.8 million in the prior quarter. Revenue increased 5.1% as the company continued to scale recycling operations and process larger volumes of battery materials.

Cost of goods sold declined to $6.9 million from $7.1 million in the preceding quarter. The combination of higher revenue and lower costs lifted gross profit 86% quarter over quarter to a record $1.3 million.

The improvement suggests ABTC is beginning to capture operating leverage at its Nevada facility. As throughput rises, the company may be able to spread fixed operating costs over more recovered material, though sustained profitability will depend on feedstock supply, recovery yields, processing costs, and prices for recycled metals.

Reinstated $57 Million DOE Grant Supports Nevada Lithium Refinery Plans

ABTC said it successfully appealed the termination of a $57 million Department of Energy grant. The funding is intended to support the first processing train at the company’s Tonopah Flats Lithium Project, a planned Nevada facility designed to produce battery-grade lithium hydroxide.

The first processing train is expected to require approximately $115 million in total investment. Reinstatement of the grant could cover roughly half of that amount, reducing the capital the company must source through equity, debt, strategic partners, or other funding channels.

The grant’s return is strategically meaningful because it strengthens ABTC’s ability to advance a U.S.-based lithium supply chain. However, the project remains subject to construction execution, permitting, funding availability, technical performance, and market conditions.

Cash Growth and Debt-Free Balance Sheet Improve Near-Term Flexibility

ABTC ended the quarter with $50.3 million in cash, including $49.5 million of unrestricted cash and $0.8 million of restricted cash. Its cash balance increased 31% from the prior quarter, and the company reported no outstanding debt.

A debt-free balance sheet gives ABTC more flexibility as it expands recycling operations and works toward refinery construction. It also reduces financing pressure relative to a company carrying large interest obligations, although future capital needs may still be substantial as the Tonopah Flats project advances.

ABAT Investors Will Watch Profitability, Project Milestones, and Funding Needs

The fiscal fourth-quarter update contains two constructive signals for ABAT investors: the company’s first meaningful improvement in gross profitability and the restoration of federal funding for a major lithium-refining project. Together, they support ABTC’s objective of building domestic recycling and critical-mineral processing capacity.

The most important next measures will be recurring revenue growth, further gross-margin expansion, recycling-facility throughput, cash use, grant-funded project progress, and the financing plan for the remaining Tonopah Flats construction costs. Record gross profit is a positive operational milestone, but long-term shareholder value will depend on ABTC’s ability to sustain margins while converting its refinery plans into commercial production.