American Battery Technology (ABAT) is on a mission to power the green energy revolution with domestically sourced lithium. CEO Ryan Melsert recently spoke with Benzinga about the company’s latest milestones, the state of the market, and the crucial role ABAT plays in providing vital metals for the burgeoning green energy sector.
Melsert emphasizes ABAT’s unique three-pillar approach: battery recycling, metal manufacturing, and resource development. The company has already built a commercial battery recycling plant that’s fully operational and producing significant quantities of recycled battery-grade lithium. This facility, which works in partnership with BASF, demonstrates ABAT’s commitment to closing the loop on battery materials, ensuring they remain within the US supply chain. However, Melsert recognizes the need to simultaneously develop primary lithium resources to meet the rapidly growing demand for electric vehicles and energy storage batteries.
ABAT has focused on developing a technology to extract lithium from claystone, a sedimentary resource abundant in the US but previously untapped. The company has built a pilot plant that successfully produces battery-grade lithium from claystone, paving the way for a larger commercial-scale refinery. This innovative approach to lithium extraction addresses the scarcity of active lithium mines in the US, which typically take decades to develop.
Melsert acknowledges the increasing interest from automotive manufacturers in securing domestic lithium supplies. ABAT has already seen significant interest from major OEMs in their lithium production, hinting at potential partnerships in the near future. Melsert also stresses the importance of balancing battery manufacturing and recycling to prevent the accumulation of unusable batteries. ABAT actively collaborates with partners in the battery and automotive industries to ensure their production aligns with the growing demand.
ABAT’s commitment to domestic lithium production has garnered significant attention, including meetings with President Biden and the securing of grants from the Department of Energy. Melsert highlights the bipartisan support for ramping up critical material production within the US, recognizing the vital role ABAT plays in achieving this goal. He also discusses the current state of the lithium market, noting the strong demand for electric vehicles and energy storage, which will continue to drive the need for increased lithium production.
Melsert believes that permit reform is crucial for accelerating the development of domestic lithium resources. He highlights a recent Senate bill aimed at streamlining permitting processes for critical materials, which could significantly reduce the time it takes to bring new projects online. Looking ahead, Melsert emphasizes the importance of strategic partnerships, particularly those involving battery manufacturers and automotive OEMs. He encourages investors to keep a close eye on companies developing strong relationships within the sector, confident in ABAT’s continued success and its role in shaping the future of green energy.
