American Battery Technology Shares Surge 8.17% on Recycling Expansion, Government Grants

American Battery Technology Company (ABAT) shares surged 8.17% on Thursday, marking a fifth consecutive day of gains and a 38.32% rally over the past five days. The stock hit its highest level since October 2025, with an intraday jump of 17.63%, driven by a combination of operational progress and strategic momentum in the battery technology sector.

The company’s battery recycling operations expanded significantly in Q4 2025, with a 70% increase in throughput at its first facility. This growth aligns with rising demand for end-of-life EV battery processing and energy storage solutions. ABAT also secured a $144 million U.S. Department of Energy grant to build a second recycling plant, reinforcing its role in domestic critical mineral supply chains.

Government support has been a key catalyst, with ABAT receiving $900 million in low-interest loan commitments for its Tonopah Flats Lithium Project. Regulatory approvals, including fast-track designations for the lithium project, have accelerated permitting timelines and reduced operational risks. These developments position ABAT to meet U.S. demand for lithium hydroxide, a critical input for EVs and renewable energy infrastructure.

Strategic partnerships and market recognition further bolster confidence. ABAT’s collaboration with Call2Recycle expanded its consumer battery recycling network, while inclusion in the Russell 2000 Index in June 2025 attracted institutional interest. The company’s cash reserves also rose to $25.4 million by September 2025, providing liquidity for scaling operations and executing its long-term lithium production plans.

Despite these positives, challenges remain, including potential regulatory delays and commodity price volatility. However, ABAT’s strong cash position, government-backed projects, and alignment with U.S. energy transition goals suggest a resilient growth trajectory. Investors are advised to monitor project milestones and strategic partnerships as key indicators of sustained momentum.