American Battery Faces Investigation After Losing $58M DOE Grant
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 26 2025
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Source: Globenewswire
- Grant Termination Impact: American Battery Technology Company faced a significant setback as the Department of Energy terminated its $58 million grant for a lithium hydroxide manufacturing facility, resulting in a more than 57% drop in share price over subsequent trading sessions, severely impacting investor confidence and market performance.
- Legal Investigation Initiated: The Schall Law Firm is investigating whether American Battery issued false or misleading statements, potentially exposing the company to legal liabilities and exacerbating market concerns regarding its transparency and governance practices.
- Investor Rights Affected: The termination of the grant and the subsequent stock price plunge have left many investors facing substantial financial losses, prompting the Schall Law Firm to encourage affected shareholders to participate in a class action lawsuit to protect their rights.
- Strategic Consequences Unfolding: The loss of DOE funding not only jeopardizes the company's financial health but may also delay its expansion plans in the lithium battery market, weakening its competitive position in the rapidly evolving renewable energy sector.
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Analyst Views on ABAT
Wall Street analysts forecast ABAT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ABAT is 7.00 USD with a low forecast of 7.00 USD and a high forecast of 7.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 4.580
Low
7.00
Averages
7.00
High
7.00
Current: 4.580
Low
7.00
Averages
7.00
High
7.00
About ABAT
American Battery Technology Company is an integrated battery materials company. The Company is engaged in the exploration of new primary resources of battery metals, the development and commercialization of new technologies for the extraction and refining of these battery metals from primary resources, and the commercialization of an internally developed integrated process for the recycling of lithium-ion batteries. The Company’s business includes lithium-ion battery recycling and Primary Resource Development & Refining. The Company’s recycling system is a two-phase process: an automated de-manufacturing process followed by a targeted chemical extraction train to separate the individual high-value metals. The Company has designed and optimizing internally developed sustainable lithium extraction process for the manufacturing of battery cathode grade lithium hydroxide from Nevada-based sedimentary claystone primary resources.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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