Dragonfly Energy's Pre-Market Shares Decline Following Share Offering Launch

Dragonfly Energy Holdings Corp., a lithium battery technology company, has launched a share offering, leading to a decline in its shares in the premarket. The company specializes in cell manufacturing, battery pack assembly, and full system integration, offering battery packs through OEMs and a retail customer base. It offers several lines of batteries under its Battle Born and Dragonfly Energy brands, as well as resells accessories for battery systems.

Dragonfly Energy Holdings Corp. (Nasdaq: DFLI), a leading player in energy storage and battery technology, has initiated an underwritten public offering of shares of its common stock and pre-funded warrants. The offering is being led by Canaccord Genuity as the sole bookrunner and is subject to market and other conditions, according to a GlobeNewswire release.

The company plans to use the net proceeds from the offering for working capital, prepayment of $45 million of outstanding indebtedness, and continued investments in initiatives intended to drive near-term revenue and strategic investments in next-generation battery technologies, the release said. Dragonfly Energy specializes in cell manufacturing, battery pack assembly, and full system integration, with its renowned Battle Born Batteries® brand serving top-tier OEMs and a diverse retail customer base.

The offering, announced on October 15, 2025, has led to a decline in the company's shares in the premarket. This could be attributed to several factors, including the dilution effect of the new shares and the uncertainty surrounding the completion and terms of the offering, as noted in the company filing.

Dragonfly Energy's Tonopah Flats Lithium Project, a significant lithium resource deposit in Nevada, is also making progress. American Battery Technology Company (ABTC) has completed baseline studies for the project, advancing its NEPA review process. This project, one of the largest in the U.S., involves a comprehensive federal permitting process overseen by the Bureau of Land Management, according to a QuiverQuant article.

QuiverQuant reported that ABTC's extensive studies, conducted over two years, covered various environmental and social aspects to assess potential impacts. The project was designated a "Covered Priority Project" by federal authorities, which is expected to expedite the permitting process and attract more attention and support for the project.

While the completion of baseline studies marks a significant milestone, the lengthy and complex federal permitting process could potentially delay the project timeline. Additionally, the reliance on third-party expert firms for the baseline studies raises concerns about the company's internal capabilities and expertise, the QuiverQuant coverage noted.

In summary, Dragonfly Energy's public offering and ABTC's progress with the Tonopah Flats Lithium Project highlight the ongoing developments in the lithium battery industry. However, the uncertainty surrounding these developments and the potential risks associated with them should be carefully considered by investors.