ABAT Shares Rally 9.84% on Strategic Advances, Institutional Buys Despite Analyst Skepticism

Shares of American Battery Technology (ABAT) surged to a peak unseen since October 2025, with an intraday rally of 18.44% before settling at a 9.84% gain. The move reflects a confluence of strategic advancements and institutional interest, despite persistent bearish analyst sentiment.

Analysts, including Weiss Ratings and Wall Street Zen, have maintained "sell" ratings for ABAT, citing concerns over its financial health. The company reported a quarterly net loss of $0.10 per share, with a net margin of -1,090.07%, underscoring operational challenges. However, recent quarterly revenue growth—jumping to $2.8 million in Q4—nearly tripled from the previous quarter, outpacing cost increases and signaling improved efficiency.

Institutional investors have shown renewed confidence, with Two Sigma Investments LP and Goldman Sachs increasing holdings. Two Sigma alone boosted its stake by 39.8%, now owning $93,000 in shares. Collectively, institutions now hold 9.88% of ABAT’s stock, indicating cautious optimism about long-term potential despite short-term skepticism.

Strategic partnerships and government-backed projects have bolstered ABAT’s position. A collaboration with Call2Recycle expanded its U.S. battery recycling capabilities, aligning with sustainability goals. The company also secured a $144 million grant from the U.S. Department of Energy for a second recycling facility and a $2.3 million grant for a lithium production pilot. These initiatives, coupled with inclusion in the Russell 2000 index, have enhanced visibility and liquidity.

ABAT’s Tonopah Flats lithium project in Nevada, designated a "Critical Mineral Priority Project," received regulatory fast-tracking and a $900 million low-interest loan from the U.S. Export-Import Bank. The project aims to produce 30,000 tonnes of lithium hydroxide annually, supported by long-term offtake agreements. Such developments highlight its role in securing domestic supply chains amid rising demand for critical minerals.

While challenges persist—negative margins, regulatory risks, and competition from established players—the company’s focus on a circular supply chain and government partnerships positions it as a key player in the battery industry. The coming quarters will be pivotal in determining whether ABAT can transition from a high-growth entity to a sustainable, profitable business.