ABTC receives letter of interest for financing of Tonopah Flats lithium mine, refinery

Battery materials manufacturer and recycler American Battery Technology Co. (ABTC), Reno, Nevada, has received a letter of interest (LOI) from the Export-Import Bank of the United States (EXIM) for $900 million in financing to support the construction of its commercial-scale lithium mine and claystone-to-lithium hydroxide refinery near Tonopah, Nevada.

“We appreciate this support from EXIM and are proud of this further validation that our mission is closely aligned with the U.S. government’s dedication to serve the American people,” ABTC CEO Ryan Melsert says. “This proposed financial support can greatly accelerate the commercialization of our domestic critical mineral mine and refinery, and we are excited to implement at scale these first-of-kind technologies that we have been demonstrating over the past several years.”

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ABTC says its lithium mine and refinery project is strongly aligned with EXIM’s “Make More in America” initiative, as well as its “China and Transformational Export Program,” both of which provide beneficial financing terms for United States-based companies facing competition from China to ensure the U.S. leads in certain critical export areas, including the domestic manufacturing of critical minerals.

ABTC says the issuance of the LOI is aligned with the Executive Order from March 20, titled “Immediate Measures to Increase American Mineral Production,” which directs federal agencies, including EXIM, to unlock permitting, funding and offtake agreements for domestic critical mineral manufacturing facilities. The executive order includes near-term actions to be determined and implemented by the agencies to fast-track permits, mobilize capital for mineral producers and create offtake agreements for strategic stockpiling for minerals critical to U.S. defense, technology and energy.

Global engineering, procurement and construction company Black & Veatch, Overland Park, Kansas, has partnered with ABTC to design and build its 30,000-tons-per-year lithium hydroxide refinery. In accordance with U.S. Securities and Exchange Commission guidelines, ABTC says it published an amended initial assessment in April 2024 that presented the technical and economic study of the project and concluded that its resource was one of the largest known lithium resources in the U.S.

ABTC claims that throughout the world lithium products generally are 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 company notes that the U.S. does not have large quantities of these resources. As a result, in order to significantly increase domestic production of battery-grade lithium products, ABTC has developed its own “low-cost and low-impact” technologies to access the lithium within unconventional lithium-rich claystone material found in central Nevada to manufacture battery-grade lithium materials at home.

The company says its 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.’ growing demand for domestically produced lithium. “By prioritizing innovation, collaboration and environmentally responsible practices, ABTC is strengthening the domestic battery supply chain at a time when the demand for U.S.-produced lithium is most critical,” the company says.