American Battery Technology Company Completes Additional Drill Program to Progress Mission to Increase American Critical Mineral Production at its Nevada Lithium Project

Rhea-AI Summary

American Battery Technology Company (NASDAQ: ABAT) has completed its fourth drill program at the Tonopah Flats Lithium Project (TFLP) in Nevada, marking progress in domestic lithium production. The program, executed by True North Drilling, comprised 8 HQ core holes ranging from 763 to 985 feet in depth.

The company has engaged Barr Engineering for mine plan development and a prefeasibility study (PFS), building upon the April 2024 Assessment that identified TFLP as a major domestic lithium resource with approximately 21.2 million tons of economical lithium carbonate equivalent (LCE).

ABAT has successfully produced battery-grade lithium hydroxide from TFLP claystone and partnered with Black & Veatch to construct a 30,000-tonnes-per-year commercial-scale lithium hydroxide refinery on-site. This development aligns with efforts to increase domestic critical mineral production and strengthen the U.S. battery supply chain.

Positive

• Successfully manufactured battery-grade lithium hydroxide from TFLP claystone
• Large domestic resource of 21.2M tons of lithium carbonate equivalent
• Secured partnership with Black & Veatch for 30,000-tonnes-per-year refinery construction
• Advanced project development with completion of fourth drill program

Negative

• Project still in pre-feasibility stage, not yet in production
• Relies on unconventional claystone deposits, which are less proven than traditional lithium sources

Insights

Mining Development Specialist

ABAT's completion of its fourth drill program at Tonopah Flats represents methodical progression in the resource development lifecycle, but remains several steps away from commercial production. The eight geotechnical holes provide essential structural data for mine pit design—a necessary technical foundation for the upcoming prefeasibility study.

The engagement of established firms like Barr Engineering for mine planning and Black & Veatch for refinery construction signals professional project execution. However, the critical path from current drilling to production typically spans 3-5 years with substantial capital requirements at each phase.

While the 21.2 million ton LCE resource is considerable, the claystone lithium deposits ABAT is targeting present unique processing challenges compared to conventional brine or hard rock sources. The company's proprietary extraction technology demonstrates promise at demonstration scale but faces significant technical and scaling hurdles before reaching the planned 30,000-tonne annual production.

This drilling program advances ABAT's position amid increasing strategic focus on domestic critical minerals, potentially benefiting from government initiatives supporting supply chain security. However, this represents standard project development progress rather than a fundamental change in near-term prospects.

Completion of 8 HQ Core Hole Drill Program to accelerate the company’s efforts to commercialize the Tonopah Flats Lithium Project in support of 'Immediate Measures to Increase American Mineral Production', a Presidential Executive Order

Reno, Nev., April 08, 2025 (GLOBE NEWSWIRE) --  American Battery Technology Company (NASDAQ: ABAT), an integrated critical battery materials company that is commercializing its technologies for both primary battery minerals manufacturing and secondary minerals lithium-ion battery recycling, has completed its fourth drill program at its Tonopah Flats Lithium Project (TFLP). This marks an important milestone in the company’s effort to accelerate the commercialization of its domestic lithium resource in alignment with President Trump’s recent executive order Immediate Measures to Increase American Mineral Production.

“This advancement in the commercialization of primary lithium production from our domestic-US Nevada claystone is a vital step towards onshoring the manufacturing of a reliable American critical mineral product,” said American Battery Technology Company CEO Ryan Melsert. “We look forward to collaborating with the Administration to accelerate the commercialization of our Tonopah Flats Project to support national security, reinforce supply chain stability, and create high-quality jobs.”

The company engaged True North Drilling of Tonopah, Nevada for the core sample collections. Additionally, Barr Engineering, a nationally recognized, top-tier mining engineering firm has been engaged to support the company in the design and development of its ‘mine plan of operation’ and the publication of a a prefeasibility study (PFS) for the TFLP.

This recent drilling program aims to further define the previously disclosed lithium resource, enhance the resolution of the 3D resource model, and provide geotechnical data to shape the mine's structural pit design. Samples collected during this phase are being assayed and characterized to further define the continuity of economic-grade lithium content across the proposed mine area.

The upcoming step in the TFLP’s commercialization involves completing and publishing its PFS, which will build upon the Amended Initial Assessment published in April 2024. This assessment identified the TFLP as one of the largest domestic lithium resources, with an estimated approximately 21.2 million tons of economical lithium carbonate equivalent (LCE). The PFS will further the process of identifying financing strategies and the overall development of the project.

American Battery Technology Company Tonopah Flats Lithium Project
Drill Program #4 Sample Holes Tonopah Flats (TF) - Geotechnical (GT)	Total Depth Drilled (feet)
TF-25–GT1	985
TF-25–GT2	893.5
TF-25–GT3	823
TF-25–GT4	823
TF-25–GT5	820
TF-25–GT6	819
TF-25–GT7	763
TF-25–GT8	820

ABTC has already successfully manufactured battery grade lithium hydroxide material from its TFLP claystone resource utilizing its internally developed integrated demonstration-scale facility.  ABTC has engaged one of the premier global construction firms, Black & Veatch, for the engineering, procurement, and construction of a 30,000-tonnes-per-year commercial-scale lithium hydroxide refinery to be constructed directly on the TFLP mining claims.

Throughout the world lithium products are generally manufactured from conventional feedstock resources, which include hard rock spodumene materials primarily from western Australia and lithium-rich brines primarily from South America; however, the U.S. does not have large quantities of these conventional resources. As a result, in order to significantly increase domestic-U.S. production of battery grade lithium products, ABTC has developed its own technologies to be able to access the lithium within unconventional lithium-rich claystone material that is found in central Nevada to manufacture these battery grade lithium materials.

ABTC’s Tonopah Flats Lithium Project underscores its mission to lead the sustainable advancement of critical battery materials and secure a pivotal role in meeting the U.S.’s growing demand for domestically produced critical mineral lithium. By prioritizing innovation, collaboration, and environmentally responsible practices, ABTC continues to pave the way for a more resilient and independent battery supply chain.

Identified resources included Inferred, Indicated, and Measured Resources

Inferred Resource
Inferred Mineral Resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an Inferred Mineral Resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an Inferred Mineral Resource has the lowest level of geological confidence of all mineral resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an Inferred Mineral Resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a mineral reserve.

Indicated Resource
Indicated Mineral Resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an Indicated Mineral Resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an Indicated Mineral Resource has a lower level of confidence than the level of confidence of a Measured Mineral Resource, an Indicated Mineral Resource may only be converted to a Probable Mineral Reserve.

Measured Resource
Measured Mineral Resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a Measured Mineral Resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a Measured Mineral Resource has a higher level of confidence than the level of confidence of either an Indicated Mineral Resource or an Inferred Mineral Resource, a Measured Mineral Resource may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.

Pre-Feasibility Study
A Preliminary Feasibility Study (or Pre-Feasibility Study) is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a preferred mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product. A Pre-Feasibility Study includes a financial analysis based on reasonable assumptions, based on appropriate testing, about the modifying factors and the evaluation of any other relevant factors that are sufficient for a qualified person to determine if all or part of the Indicated and Measured Mineral Resources may be converted to mineral reserves at the time of reporting. The financial analysis must have the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable. A Pre-Feasibility Study is less comprehensive and results in a lower confidence level than a feasibility study. A Pre-Feasibility study is more comprehensive and results in a higher confidence level than an Initial Assessment.

Initial Assessment
An Initial Assessment is a preliminary technical and economic study of the economic potential of all or parts of mineralization to support the disclosure of mineral resources. The Initial Assessment must be prepared by a qualified person and must include appropriate assessments of reasonably assumed technical and economic factors, together with any other relevant operational factors, that are necessary to demonstrate at the time of reporting that there are reasonable prospects for economic extraction. An Initial Assessment is required for disclosure of mineral resources but cannot be used as the basis for disclosure of mineral reserves. An Initial Assessment is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied that would enable them to be classified as mineral reserves. There is no certainty that the economic results of an initial assessment will be realized. The mineral resource estimates presented in the ABTC Tonopah Flats Initial Assessment were performed by third-party, qualified person RESPEC, LLC and were classified by geological and quantitative confidence in accordance with the Securities and Exchange Commission (SEC) Regulation S-K 1300.

About American Battery Technology Company
American Battery Technology Company (ABTC), headquartered in Reno, Nevada, has pioneered first-of-kind technologies to unlock domestically manufactured and recycled battery metals critically needed to help meet the significant demand from the electric vehicle, stationary storage, and consumer electronics industries. Committed to a circular supply chain for battery metals, ABTC works to continually innovate and master new battery metals technologies that power a global transition to electrification and the future of sustainable energy.

Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are “forward-looking statements.” Although the American Battery Technology Company’s (the “Company”) management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward-looking statements involve a number of risks and uncertainties, which could cause the Company’s future results to differ materially from those anticipated. Potential risks and uncertainties include, among others, risks and uncertainties related to the Company’s ability to continue as a going concern; interpretations or reinterpretations of geologic information, unfavorable exploration results, inability to obtain permits required for future exploration, development or production, general economic conditions and conditions affecting the industries in which the Company operates; the uncertainty of regulatory requirements and approvals; fluctuating mineral and commodity prices, final investment approval and the ability to obtain necessary financing on acceptable terms or at all. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in the Company’s filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended June 30, 2024. The Company assumes no obligation to update any of the information contained or referenced in this press release.

Attachments

• American Battery Technology Company's Tonopah Flats Lithium Project - Drill Program 4
• American Battery Technology Company's Tonopah Flats Lithium Project - Drill Program 4

Tiffiany Moehring
American Battery Technology Company
720.254.1556
tmoehring@batterymetals.com

FAQ

What is the estimated lithium resource size at ABAT's Tonopah Flats Project?

The Tonopah Flats Project contains approximately 21.2 million tons of economical lithium carbonate equivalent (LCE), as identified in the April 2024 Assessment.

What is the planned production capacity of ABAT's new lithium hydroxide refinery?

ABAT is planning to construct a 30,000-tonnes-per-year commercial-scale lithium hydroxide refinery at the Tonopah Flats site.

How many drill holes were completed in ABAT's fourth drilling program?

The fourth drilling program completed 8 HQ core holes, with depths ranging from 763 to 985 feet.

What is the current development stage of ABAT's Tonopah Flats Project?

The project is progressing from Initial Assessment to Prefeasibility Study (PFS) stage, with ongoing sample analysis and geotechnical data collection for mine design.

Which key partners is ABAT working with on the Tonopah Flats Project?

ABAT is working with True North Drilling for core sampling, Barr Engineering for mine planning and PFS, and Black & Veatch for refinery construction.