The stock price of American Battery Technology Company (NASDAQ: ABAT) increased significantly after a strategic equity deal was announced. As of the most recent premarket check, ABAT shares had risen 16.60% to $3.66 from the previous closing price of $2.60.
Equity Offering Details
The equity transaction involved securities purchase agreements with two institutional investors, encompassing 3,773,586 shares of common stock and accompanying warrants for an equivalent number of shares. In line with Nasdaq regulations, the offering was priced “at-the-market” and included a warrant and share price of $2.65 each. The warrants are immediately exercisable at $2.80 per share and have a five-year validity term which is likely to close today and will generate around $10 million in gross proceeds.
ABAT is Strengthening Battery Initiatives
American Battery has also recently received a $144 million federal grant from the U.S. Department of Energy (DOE). A new lithium-ion battery recycling facility will be constructed in collaboration with Argonne National Laboratory as a result of this contract. This facility, which can generate 100,000 tons of battery materials annually, is ABAT’s second commercial-scale plant.
The facility will handle diverse materials, including end-of-life batteries and manufacturing scrap, converting them into high-grade nickel, cobalt, manganese, and lithium hydroxide. These materials will cater to North America’s burgeoning automotive and battery sectors. This effort complements ABAT’s strategic partnership with BASF, a leading North American cathode manufacturer, formed in Summer 2023.
Scaling Up Sustainable Recycling Technologies
ABAT’s second recycling facility aims to scale operations fivefold compared to its first. Utilizing proprietary de-manufacturing and chemical extraction technologies, the company targets competitive production costs and minimal environmental impact. Unlike traditional methods relying on high-temperature smelting or generic shredding, ABAT’s processes are engineered to meet stringent specifications from cathode refining customers.
This strategic expansion aligns with growing domestic demand for sustainably-produced battery-grade materials. By leveraging federal support and innovative technology, ABAT is positioned to enhance its role as a key supplier in the U.S. battery supply chain.
