American Battery Technology (NASDAQ:ABAT) used its fiscal second-quarter 2026 earnings call to highlight record revenue from its first commercial-scale lithium-ion battery recycling facility, continued work on a second recycling plant in the Southeast U.S., and ongoing permitting and engineering efforts for its Tonopah Flats lithium hydroxide project.
Two business lines: recycling and domestic lithium production
CEO and CTO Ryan Melsert reiterated that the company is focused on building a “closed-loop” battery materials infrastructure with two core business units: lithium-ion battery recycling and primary lithium production from claystone. Melsert said recycling can help “close the loop” by returning critical minerals from battery waste streams back to domestic customers, but because the number of batteries in the field continues to grow, additional supply is needed to “fill the loop the first time.” ABAT’s claystone-to-lithium-hydroxide work is intended to address that incremental demand using a U.S.-based mineral resource and internally developed extraction and refining technologies.
Record quarterly revenue and near cash break-even at first recycling facility
Melsert emphasized that operating costs rose more slowly than revenue as the company scaled output at its first recycling plant. He said the company incurred about $4.9 million in cash expenses to operate the plant during the quarter and about $6.4 million when including non-cash costs such as depreciation and stock-based compensation. Based on those figures, he said ABAT is “getting to the point where the amount of revenue and interest income we’re generating is very close to the amount of cash costs it requires to run this plant,” and that the company is working on additional ramp-up steps and operational efficiencies as it moves through the break-even point and seeks to improve margins.
Melsert also noted the pace of growth, stating that revenue in the December quarter was greater than the prior four quarters combined, which he characterized as “much greater than linear growth” as operations scale.
Cash balance, debt payoff, and a new CFO
On liquidity, Melsert said ABAT ended the quarter with a cash balance of $48.7 million (later summarized as approximately $47.9 million), attributing the increase to market actions in the fall and warrant exercises by existing shareholders. He said the company plans to use its cash to continue scaling operations at the first recycling plant, add value-add processes, and advance two additional facilities.
He added that ABAT paid off remaining debt or convertible notes during the quarter and said the company now has zero debt, describing it as a strong balance sheet position alongside the higher cash balance.
The company also announced an executive addition: Alex Flores is set to join as Chief Financial Officer beginning the following Monday. Melsert said Flores brings more than 20 years of experience leading finance organizations in the battery and automotive sectors in North America, including work on government-related projects and financing proposals and experience driving operational improvements.
Operational updates: feedstock sources, certifications, and a second recycling plant
Melsert said the company has been receiving significant volumes of battery material from the automotive sector and an increasing amount from stationary grid and battery energy storage system applications. He said the company continues to receive material tied to previously announced large projects and is focused on improving plant efficiency through economies of scale and workforce learning.
He also highlighted that ABAT has received CERCLA certification, which he said is rare and enables the company to receive certain types of material from stationary facilities across the country. Melsert said ABAT works with the EPA to manage the certification and is receiving material from various applications nationwide.
On expansion, Melsert said ABAT is moving forward with the design and construction of a second battery recycling facility in the Southeast U.S., noting that team members have been on site in recent months working with local and strategic partners.
Tonopah Flats lithium project: demonstration work, permitting, and feasibility milestones
In its primary lithium business, Melsert said ABAT continues advancing its Tonopah Flats Lithium Project, which aims to produce battery-grade lithium hydroxide from claystone. He said ABAT built an integrated demonstration-scale facility about two years ago and has been running it to show how the company processes claystone from its own mine through extraction, purification, conversion, and crystallization into a final lithium hydroxide product.
Melsert said the project was selected in the prior summer and fall by the Trump administration as a priority project. As a result, he said ABAT has been assigned a liaison from the FAST-41 Permitting Council and holds weekly meetings to accelerate federal permitting, with status reflected on the FAST-41 public dashboard. He said ABAT has completed submission steps for baseline studies and is in the NEPA process with the Department of the Interior and the Department of Energy, a process he said has been underway since spring 2023.
Melsert also discussed the company’s pre-feasibility study (PFS) published last fall for a 30,000-ton-per-year facility, modeled with a 45-year mine life. He said the PFS showed “very attractive returns,” including an after-tax net present value “of about 8%,” and cited a modeled production cost of “just over $4,300 per ton” of product. He said the company’s resource and reserve estimates have been updated multiple times, and that the PFS included about 21.3 million tons of lithium hydroxide accessible, with a portion upgraded into proven and probable reserves.
Looking ahead, Melsert said ABAT is working on a definitive feasibility study expected to be published “shortly,” describing it as the final step toward a bankable design to support investor engagement and to finalize offtake agreements.
Q&A: Moss Landing material under EPA cleanup agreement
In the call’s only audience question, AGP Managing Director and Head of Metals and Mining Research Jake Sekelsky asked about progress on ramping the company’s “$30 million EPA cleanup agreement.” Melsert said the question referred to the Moss Landing project in Northern California, which has been undergoing decommissioning for many months. He said ABAT has been receiving material from that facility since the end of the summer and that it represents a substantial portion of feed into ABAT’s factory, while also noting the company has other feedstock sources across the stationary market, automotive market, and consumer electronics. Melsert said ABAT expects to receive “substantially more material” from the project and described the relationship as a partnership.
About American Battery Technology (NASDAQ:ABAT)
American Battery Technology Company (NASDAQ: ABAT) is a U.S.-based company focused on developing domestic supply chain solutions for critical battery metals. The company’s core activities span from exploration and extraction of lithium resources to the design and operation of recycling facilities targeted at end-of-life batteries and manufacturing scrap. By integrating upstream resource development with downstream recycling, ABAT aims to create a closed-loop system that bolsters North American battery manufacturing.
On the resource side, American Battery Technology holds lithium claystone claims in Nevada’s Clayton Valley and is advancing a pilot direct-extraction facility designed to recover lithium and other valuable metals from brines.
