American Battery Technology’s Nevada lithium project added to federal permitting dashboard

American Battery Technology Company (NASDAQ: ABAT) soared on Monday after its Tonopah Flats lithium project (TFLP) in Nevada was given “transparency priority” status by the US Federal Permitting Council.

With the designation, the Tonopah Flats lithium project is now featured on the FAST-41 permitting dashboard, which ABAT says underscores the project’s role in supporting US-based critical mineral production and energy independence.

“We are excited by this selection of our Tonopah Flats lithium project as a FAST-41 critical mineral transparency project,” ABAT chief executive officer Ryan Melsert said in a press release.

The Permitting Council, established in 2015 by Title 41 of the Fixing America’s Surface Transportation Act (FAST-41), oversees and streamlines federal environmental reviews for critical infrastructure projects. While FAST-41 covered projects receive coordinated project plans and expert support, transparency projects only gain public visibility on the dashboard without additional FAST-41 benefits.

“As we are currently working through permitting efforts with multiple federal agencies for the construction of this domestic critical mineral project, the support to coordinate and fast-track these efforts is greatly appreciated,” Melsert added.

Shares of American Battery Technology surged 13.4% to $1.66 on the NASDAQ following the announcement, giving the Reno-based company a market capitalization of $152 million.

“This is an exciting time as we work with our colleagues across the federal government to unleash America’s vast energy and mineral resources,” said Emily Domenech, the Permitting Council’s executive director. “The Permitting Council stands ready to bring the transparency of our program to these projects, speeding the production of the critical minerals needed for our national and economic security.”

Tonopah Flats represents one of three new projects that the Trump administration has added to the FAST-41 permitting dashboard.

Large claystone deposit

ABAT says this distinction marks a significant milestone in the development of what it considers to be one of the largest identified claystone resource deposits in the country. The project is situated within Nevada’s Big Smoky Valley, an area known for its unique lithium-rich sedimentary claystone.

According to an initial SEC S-K 1300 assessment in 2024, the project has in excess of 6 billion tonnes in resources grading 574 ppm lithium. Total amount of claystone processed over life of mine is estimated at 597 million tonnes, averaging 4,111 ppm LHM (lithium hydroxide monohydrate). Based on a 10% discount rate, it has a net present value of $4.67 billion.

To tap into the Tonopah Flats claystone resource, ABAT has developed an in-house extraction and purification technology that it believes represents a lower-cost, lower-impact solution in contrast to conventional lithium extraction methods.

In January 2021, ABAT received a grant from the US Department of Energy to fund the demonstration and scaling of its extraction technologies into a multi-tonne-per-day field demonstration system. It later received an additional grant of $57 million to build, commission and operate a $115 million commercial-scale facility to produce lithium hydroxide monohydrate.

Funding access

With the designation as a transparency priority project, the company said this would be especially beneficial as it is currently engaged with multiple federal agencies for project permitting, noting that Tonopah Flats is situated on land managed by the US Department of Interior.

In late April, ABAT received a letter from the Export-Import Bank of the United States (EXIM) expressing interest in providing a $900 million loan to support the subsequent expansion of its commercial-scale lithium mine and refinery.

In late 2024, the battery metals developer also received $144 million from the Department of Energy to build a new commercial-scale lithium-ion battery recycling facility.