American Battery Materials Applies for $40.75mln Grant Under Defense Production Act-Title III Appropriation

American Battery Materials has submitted an application for a $40.75mln grant under the Defense Production Act-Title III appropriation to support the development of a domestic supply chain for critical minerals like lithium and magnesium. The company believes it is a suitable candidate to assist the US government in this effort.

American Battery Materials (NASDAQ: ABAT) has submitted an application for a $40.75 million grant under the Defense Production Act-Title III appropriation to support the development of a domestic supply chain for critical minerals like lithium and magnesium. The company believes it is a suitable candidate to assist the US government in this effort, aiming to reduce reliance on foreign suppliers and bolster national security.

The application is part of the ongoing efforts to strengthen the domestic critical mineral supply chain, as highlighted by recent executive orders and initiatives from the Trump administration. In March 2025, President Trump issued an executive order directing federal agencies to fast-track permits, mobilize capital, and create offtake agreements for domestic critical mineral manufacturing facilities [2].

American Battery Materials' Tonopah Flats Lithium Project, located in central Nevada, has been selected as a FAST-41 Transparency Project by the U.S. Federal Permitting Council. This designation underscores the project's critical role in advancing domestic lithium production and supporting U.S. energy independence. The project is designed to produce 30,000 metric tons of lithium hydroxide annually, leveraging the company's proprietary technologies to extract lithium from unconventional claystone resources [2].

POSCO Holdings Inc. (NYSE: PKX), a South Korean steel producer, has also been active in the lithium market. In July 2023, POSCO announced plans to construct a pilot lithium processing plant in the US, collaborating with Australia’s Anson Resources to support its EV battery raw materials supply chain. This initiative aims to reduce reliance on Chinese suppliers and address new import restrictions imposed by the Trump administration [1].

The growing demand for critical minerals, particularly lithium, in sectors such as electric vehicles, defense systems, and consumer electronics, underscores the need for a robust domestic supply chain. American Battery Materials' application for the $40.75 million grant aligns with this objective, as it seeks to lead the sustainable advancement of domestic critical minerals and secure a pivotal role in meeting the U.S.'s growing demand for domestically produced critical mineral lithium.

References:

[1] https://finance.yahoo.com/news/posco-holdings-build-us-lithium-080130415.html

[2] https://www.globenewswire.com/news-release/2025/06/30/3107607/0/en/American-Battery-Technology-Company-s-Tonopah-Flats-Lithium-Project-Selected-by-Trump-Administration-for-Fast-Track-Permitting-as-Critical-Mineral-Priority-Project.html