American Battery Surges 18% in Intraday Thrill Ride: What’s Fueling the Frenzy?

Summary
• American Battery Technology (ABAT) rockets 18.44% to $2.84 on July 21, 2025
• Turnover soars to 6.79 million shares, 7.63% of float
• Sector peers spotlighted in MarketBeat’s ‘Battery Tech Watchlist’
• Rare earth export tensions and recycling innovations spark speculation

At 1:59 PM ET, American Battery Technology (ABAT) is trading at $2.84, up 18.44% from its $2.40 open, with a 52-week high of $4.11 in sight. The surge follows a volatile session where the stock traded between $2.60 and $3.26, fueled by renewed investor interest in battery technology stocks. MarketBeat’s recent focus on ABAT as a key player in the rare earth export ban narrative, coupled with its recycling innovations, has ignited short-term momentum.

Rare Earth Export Tensions and Recycling Prowess Ignite ABAT
The explosive move in ABAT is directly tied to MarketBeat’s latest sector analysis, which highlights the stock as a beneficiary of China’s rare earth export restrictions on the U.S. As a battery materials company specializing in lithium, nickel, cobalt, and manganese extraction and recycling, ABAT’s core operations align with global demand for secure battery metal supply chains. Recent news of China’s export curbs has amplified investor concerns over material shortages, pushing ABAT’s stock into the spotlight. The company’s integrated recycling process for lithium-ion batteries further positions it as a strategic player in the decarbonization narrative, attracting speculative buying.

Battery Tech Sector Gains Altitude as ALB Leads Rally
The broader battery technology sector is experiencing a tailwind, with Albemarle (ALB), the sector’s leader, rising 3.36% intraday. MarketBeat’s July 16 report identifies ABAT, Mullen Automotive, and Tetra Technologies as top performers amid heightened trading volumes. While Mullen Automotive (MULN) and Tetra Technologies (TTI) underperformed in recent sessions, the sector’s focus on rare earth metals and recycling solutions remains intact. ABAT’s surge reflects its unique positioning in both resource extraction and recycling, contrasting with peers like ALB, which primarily focuses on lithium refining.

Capitalizing on ABAT’s Volatility: ETFs and Options Playbook
• 200-day moving average: $1.298 (well below current price)
• RSI: 77.98 (overbought territory)
• MACD: 0.205 (bullish divergence)
• Bollinger Bands: Price at $2.84 vs. upper band $2.40 (overextended)
• Kline pattern: Short- and long-term bullish

ABAT’s technicals suggest a continuation of its bullish momentum but with caution due to overbought conditions. The 200-day MA at $1.298 and RSI near 78 indicate a potential pullback, while the MACD and Kline pattern support higher targets. A 5% upside scenario to $2.98 would test the 52-week high of $4.11, though near-term resistance at $3.00 (200-day MA) and $3.26 (intraday high) must be cleared. The sector leader, ALB, rising 3.36%, reinforces the sector’s strength, but healthcare ETFs like XLV (up 0.16%) and VHT (up 0.20%) show mixed relevance.

Top Options Contracts:
• ABAT20250815C2.5 (Call): Strike $2.50, Expiry 8/15, IV 149.84%, Delta 0.669, Theta -0.0098, Gamma 0.3309, Turnover $137,141
— High IV and moderate Delta suggest strong gamma sensitivity for directional bets. A 5% upside to $2.98 yields max payoff of $0.48/share, with leverage ratio at 4.98%.
• ABAT20250919C3 (Call): Strike $3.00, Expiry 9/19, IV 162.34%, Delta 0.582, Theta -0.0065, Gamma 0.2148, Turnover $158,758
— High IV and liquidity make this a speculative play. A 5% upside to $2.98 results in a $0.00/share payoff, but the leverage ratio of 4.35% supports aggressive positioning. Theta decay is manageable for a mid-term hold.

Aggressive bulls should consider ABAT20250815C2.5 into a break above $3.00, leveraging its high gamma for rapid price swings. For a longer-term play, ABAT20250919C3 offers liquidity and IV expansion potential if the sector narrative intensifies.

Backtest American Battery Stock Performance
Following an intraday surge of at least 18% for ABAT, the 3-day win rate is 41.24%, the 10-day win rate is 44.07%, and the 30-day win rate is 40.68%. The maximum return during the backtest period was 3.72%, which occurred on day 59 after the surge. These results suggest that while there is potential for gains following a significant intraday surge, there is also a considerable risk of negative returns in the short term.

ABAT’s Rally: A Short-Term Spree or Sustainable Surge?
ABAT’s 18.44% intraday surge hinges on its alignment with the rare earth export ban narrative and its recycling innovation edge. While technicals suggest a potential pullback from overbought levels, the sector’s momentum—led by ALB’s 3.36% gain—supports a continuation of the rally. Investors should monitor the $3.00 level as a critical inflection point; a break above this could reignite the 52-week high of $4.11. For options traders, the ABAT20250815C2.5 call offers a high-gamma play on near-term volatility, while the ABAT20250919C3 caters to those betting on a September rebound. Watch for a breakdown below the $2.60 intraday low or a regulatory shift in the rare earth trade war to determine the next move.