Q4 2025 American Battery Technology Co Earnings Call

Good afternoon, I'm, Tiffany mooring and I'm, the director of Communications and marketing at the American Battery Technology Company I.

I would like to welcome everyone to our fiscal fourth year quarter and full year 2025 earnings call.

On behalf of the entire team at American Battery Technology Company I would like to thank everyone for taking the time to join our call. Today. Following this presentation recording of this call along with our press release and our quarterly SEC filings will be available on our website at investors Dot American battery technology Doc.

Com.

This presentation includes forward looking statements within the meaning of the safe Harbor provisions of the U S. Private Securities Litigation Act 1995.

These statements are subject to risks and uncertainties that could cause actual results to differ from those anticipated.

Additional information regarding the factors that may cause actual results to differ can be found in our annual filings.

On today's call, our CEO and CTO, Ryan Melcher will provide remarks regarding our two lines of business, which include our lithium ion battery recycling business and our primary claystone to lithium hydroxide business.

It is now my pleasure to turn the meeting over to Ryan.

Great. Thank you gentlemen.

Okay.

As many of you know, we work and the critical mineral manufacturing business area.

We are working to try to make the closed loop for the battery metal supply chain within North America right. Now this is much more of a linear economy and as we work through the system. We're working with many of the partners in the other areas of the closed loop infrastructure.

In order to fully implement this closed loop system, we found at multiple different aspects where needed to be added.

The first is the implementation and commercialization of a lithium ion battery recycling system.

And this system, we take that waste material from other stages of the industry as well as end of life material recycle those materials through a multi phased process and then make battery grade materials that are sold right back into that closed loop.

If the total amount of batteries in the field was stable in a mature industry recycling could provide the vast majority of minerals needed, but without quickly. The battery industry is growing in addition to closing the loop, we'd also need to be filling that loop there first time.

So in addition to our battery recycling business unit. We have also acquired large amounts of mineral resources in the U S and developed our own first of kind technologies of how to extract those individuals' battery elements, how to purify upgrade them and how to also make battery grade products from our prime.

Barry Battery metals manufacturing business. In addition to our battery recycling business.

As for our quarterly earnings that we're reviewing today, we're proud to show that compared to the previous quarter. We had a very large increase in revenue for the company.

This is largely due to increased operations at our first battery recycling plant just outside of arena. So we nearly tripled revenue this quarter compared to the quarter ending March and.

And at the same time, we had a much smaller relative increase in our cash cost of goods sold really showing that as we hit the economies of scale and larger operation. The first recycling plants by revenues are growing at a much faster pace than our costs. So we look forward to continuing to ramp this plant and continuing to improve that gross margin.

Separate from our quarterly financials. We also did just finish our fiscal year and when you tie those past four quarters. Together. We also see a very substantial increase in revenue of about $4.3 million for this past year compared to about zero point $3 million a year beforehand.

Similarly.

As a much larger relative increase in revenue than the increase in the cash cost of goods sold allowing for an increase in margin as we continue to scale that plant and improve operations.

Beyond just the recycling plant total operational costs for that business actually decreased this past year over the year beforehand, as we again experienced the economies of scale and had cost control measures to improve operations.

We were excited to have been selected to be listed on the Russell 2003 thousand indices back in June.

There's really a sign that we have.

A different scale of investor as we move forward.

And because of that operations, we have seen a very substantial increase in trading volume since being added to that index and a significant increase in percentage ownership from institutional investors with that market activity. We've increased our cash balance to just over $25 million as of September 15th this year.

Okay.

As mentioned our battery recycling operations. The main metric over the past year is that we have increased the throughput of our plant about 70% in a single quarter for the quarter ending June versus ending March that's really has been about a large amount of <unk>.

Incremental improvements as we continue to add head count add shifts counts have increased amounts of material and improve our operations there.

We've been working with several different projects at this recycling facility for the past few years and one of them is a grant contract. We won from the U S. Advanced battery consortium from a project that actually started back in the fall of 2021.

We worked on that project for many years and we formally closed out that projects a few months ago.

I'll be able to show that we had achieved each of the requirements of that grant contracts as we worked with our partners there with the U S Department of Energy General Motors Ford and Atlanta.

To really demonstrate that this recycling plant could take and false scale batteries recover those materials purify the battery metals up to battery grade.

Work with our partner BSF to actually take those recycled metals manufacturer large amounts of high energy density active cathode material specifically from those recycled metals.

And then make large amounts over 100 full scale automotive battery cells from our recycled metals and actually test flow cells at both our partner and department of energy facilities against control group cells, and really being able to show that there was very little difference about the performance of the battery cells win.

Using our recycled metals versus using metals from the market.

This is a very important step for going through large scale qualifications and many different customers. We were excited to receive financial support from the U S. A D C and to now have this project closed out as we move forward with these different opportunities.

Because of our increased operations and the success as working with our partners on these early scale projects last September we were notified that we had been selected for a competitive grants from the U S Department of energy for $144 million to now construct a second battery recycling plants.

We were selected back in September 2024, and through an accelerated process. We were contracted in December 2024, and actually started this project back on January one 2025 so.

So we're excited to be taken all the lessons learned in our first recycling plant working through our next generation designs and moving forward with a second battery recycling facility.

Yeah.

While we work with a lot of automotive companies the past half year, we've really started to work even more with stationary grid battery systems. So these large battery energy storage systems, usually work to support grid operations. They tend to be extremely large and the gigawatt hour scale and have a different type of load profile than we saw.

C with an automotive batteries.

But because they make battery grade minerals, they work equally well, whether they're sold to companies to make batteries for.

Vehicles or batteries for stationary storage and separately, we receive both types of material Anti-war recycling facility near arena.

A few months ago, we were fortunate enough to have been invited to the groundbreaking ceremony of one of the fastest supercomputers in the world at Argonne National Lab near Chicago.

This supercomputer is backed up by large amounts of grid scale batteries.

So it was great being able to join the ceremony there were very few private companies actually in attendance. It was mostly different government organizations and to really highlights how the U S manufacturing of critical minerals supports data centers support supercomputers and supports different types of artificial intelligence.

And machine learning operations, we were asked to present at this event actually to several dignitaries, including the U S Secretary of energy, Chris right back in July so really being able to explain to him directly at the Argonne National Laboratory <unk>.

Why both battery recycling and domestic let's say manufacturing are important to support data center supercomputer and artificial intelligence operations as we move forward.

Because of our a large amount of interactions with the Doa there was great we able to connect with this new administration and really show them the benefits of the projects we're working on together.

When we look at our primary placement of lithium hydroxide technologies.

Over the past several years, we have been building out this multi ton per day integrated pilot facility near arena.

While we finished a bench scale operations a few years ago, it's very important to take those bench scale results and actually build.

Demonstration scale integrated systems that operate in real time on a continuous fashion. This is a very big de risking step as we look to be building out our commercial scale lithium hydroxide refinery.

Similarly, we were fortunate enough to have the buildup of this demonstration facility supported by a department of Energy Grant. This project also started in the fall of 2021 and as of a few months ago. We've also officially closed out this project and completed all requirements showing how we went through that.

Tiffany Moring: Good afternoon. I'm Tiffany Moring, and I'm the Director of Communications and Marketing at American Battery Technology Company. I would like to welcome everyone to our fiscal fourth quarter and full-year 2025 earnings call. On behalf of the entire team at American Battery Technology Company, I would like to thank everyone for taking the time to join our call today. Following this presentation, a recording of this call, along with our press release and our quarterly SEC filing, will be available on our website at investors.americanbatterytechnology.com. This presentation includes forward-looking statements within the meaning of the Safe Harbor provisions of the U.S. Private Securities Litigation Act, 1995. These statements are subject to risk and uncertainties that can cause actual results to differ from those anticipated. Additional information regarding the factors that may cause actual results to differ can be found in our annual filings.

Design construction commissioning and then sustained operations and a multi week run showing how we feed our.

Specific tone-up off labs placed on material into the plant go through each of the operating steps and make our battery grade lithium hydroxide product out the backend.

So we've made many different scales of samples to be sent out to different strategic customers and to be able to go through different types of analytical evaluations.

Test manufacturer and different types of active cathode material and again, making full sized battery cells with the lithium specifically extracted from our total cost labs projects.

Okay.

Because of the operations at our bench scale and these are <unk>.

Demonstration scale facility. We have continued to go forward with the design of our commercial scale 30000 in time lithium hydroxide per year facility working with our selected EPC firm Black and veatch continuing to send these materials to customers.

Tiffany Moring: On today's call, our CEO and CTO, Ryan Melsert, will provide remarks regarding our two lines of business, which include our lithium-ion battery recycling business and our primary claystone-to-lithium hydroxide production business. It is now my pleasure to turn the meeting over to Ryan.

For a definition of different types of long term off take agreements as we progressed that projects Bill.

Building. This demonstration facility has been great advancing the technology and Derisking the construction, but a parallel effort is advancing our permitting progress for the local state and federal levels.

Ryan Melsert: Great. Thank you, Tiffany. As many of you know, we work in the critical mineral manufacturing business area. We are working to try to make the closed loop for the battery mineral supply chain within North America. Right now, this is much more of a linear economy, and as we work through this system, we're working with many of the partners in the other areas of the closed loop infrastructure. In order to fully implement this closed loop system, we found that multiple different aspects were needed to be added. The first is the implementation and commercialization of a lithium-ion battery recycling system. In this system, we take back waste material from other stages of the industry, as well as end-of-life material, recycle those materials through a multi-phase process, and then make battery-grade materials that are sold right back into that closed loop.

We were excited a few months ago to have been selected by.

The White house, the National Energy dominance Council and the fast forward to when permitting counsel to have our <unk> lithium project be selected as a transparency priority projects, which is really meant to streamline all federal permitting operations for high priority critical mineral projects.

Within the U S.

Being selected for this was important to really good alignment amongst many other different federal agencies.

And this transparency priority project was really set up by the executive order that President Trump issued back on March 20th.

But on top of the comment of transparency priority projects. There was actually an escalation and we were approved to become a full covered projects just back in August.

Ryan Melsert: If the total amount of batteries in the field was stable in a mature industry, recycling could provide the vast majority of minerals needed. With how quickly the battery industry is growing, in addition to closing the loop, we also need to be filling that loop the first time. In addition to our battery recycling business unit, we have also acquired large amounts of mineral resources in the U.S. and developed our own first-of-kind technologies of how to extract those individual battery elements, how to purify and upgrade them, and how to also make battery-grade products from our primary battery metals manufacturing business, in addition to our battery recycling business. As for our quarterly earnings that we are reviewing today, we're proud to show that compared to the previous quarter, we had a very large increase in revenue for the company.

So now having our tone-up off last lithium project be a cupboard project, we have a project coordinator Eric actually assigned to this effort.

Holding meetings amongst all different federal agencies, and really driving visibility and accountability as we move forward.

So just in the past few weeks, we've seen very significant acceleration of these permitting efforts as we work to bring these different federal groups together.

And the SaaS 41 committee work so much all different federal agencies, including we've mentioned that back in the spring. We did receive a letter of interest from the U S. Export import bank to provide a 900 million dollar low interest loan to support this tone up off last lithium project.

So as a federal agency. This has also been facilitated through the permanent council and through our selection as a covered projects.

Ryan Melsert: This is largely due to increased operations at our first battery recycling plant just outside of Reno. We nearly tripled revenue this quarter compared to the quarter ending March. At the same time, we had a much smaller relative increase in our cash cost of goods sold, really showing that as we hit economies of scale and larger operations in the first recycling plants, our revenues are growing at a much faster pace than our costs. We look forward to continuing to ramp this plant and continuing to improve that gross margin. Separate from our quarterly financials, we also did just finish our fiscal year. When you tie those past four quarters together, we also see a very substantial increase in revenue of about $4.3 million for this past year, compared to about $0.3 million the year beforehand.

We mentioned we were added to the Russell index back at the end of June.

Since being added we have a different set of investors really owning and trading our stocks. We've seen a very significant increase in our trading volume per day since the end of June being selected and also a big increase in the amount of institutional ownership.

There's really provide many different types of discussions we've had with strategic investors. Since then and has really facilitated different types of funding opportunities as we move forward.

Yeah.

As a summary of our financial results for this fiscal year versus the previous one as mentioned a very substantial increase in revenue really by increasing the operations and the ramp rate of our first battery recycling plant.

Ryan Melsert: Similarly, it's a much larger relative increase in revenue than the increase in the cash cost of goods sold, allowing for an increase in margin as we continue to scale that plant and improve operations. Beyond just the recycling plant, total operational costs for the business actually decreased this past year over the year beforehand, as we again experienced economies of scale and had cost control measures to improve operations. We were excited to have been selected to be listed on the Russell 2000 and 3000 indices back in June. This is really a sign that we have a different scale of investor as we move forward. Because of that, operations have seen a very substantial increase in trading volume since being added to that index, and a significant increase in % ownership from institutional investors.

Our cost of goods sold has increased but at a lower percentage than our revenue has increased and as we continue to scale that plant. We expect to see continued improvements in our margin.

We continue to receive funds from our government grants we have contracted.

Including ones that have started partway through the fiscal year. So we do expect I see that increase as we ramp up those newer projects.

And throughout the year, we were able to.

Taken substantial funds through our financing activities and increase in funds used for operating activities as we continue to ramp up our first recycling plant and a substantial decrease.

And our cash used for investing activities.

As mentioned our cash balance has increased substantially both at the end of the fiscal year and as Ive mid September as we continue to receive funds.

Ryan Melsert: With that market activity, we've increased our cash balance to just over $25 million as of September 15th this year. As mentioned, our battery recycling operations, the main metric over the past year, is that we have increased the throughput of our plant about 70% in a single quarter for the quarter ending June versus ending March. This really has been about a large amount of incremental improvements as we continue to add headcount, add shift count, have increased amounts of material, and improve our operations there. We've been working with several different projects at this recycling facility for the past few years. One of them is a grant contract we won from the U.S. Advanced Battery Consortium from a project that actually started back in the fall of 2021.

Really facilitated by that listing on the Russell 2000 index and the exercising of several of our outstanding warrants.

We still have a large balance on our contracted government grants as these are multiyear projects that we are continuing to receive funds on as we move forward.

And we have received some competitive tax credits last spring that will still be monetize as we move forward and continuing to build out our first recycling plants near arena and our second recycling plants in the southeast U S.

That's the summary of our financial results for the past fiscal year, we will be holding our annual shareholder meeting in November at which time, we will go through more details about the operations of our past year and some more of our multi year operations as we look more forward looking.

Ryan Melsert: We worked on that project for many years, and we formally closed out that project a few months ago, really able to show that we had achieved each of the requirements of that grant contract as we worked with the partners there, with the U.S. U.S. Department of Energy, General Motors, Ford, and Stellantis, to really demonstrate that this recycling plant could take in full-scale batteries, recover those materials, purify the battery metals up to battery grade, work with our partner, BASF, to actually take those recycled metals, manufacture large amounts of high energy density active cathode material specifically from those recycled metals, and make large amounts, over 100 full-scale automotive battery cells from our recycled metals, and actually test those cells at both our partner and U.S.

So at this time I would like to thank everybody for joining this earnings call as we went through the details of both our fiscal fourth quarter and our full fiscal year.

And again, we look forward to seeing everybody in mid November at our full annual shareholder meeting.

Ryan Melsert: Department of Energy facilities against control group cells, and really being able to show that there was very little difference about the performance of the battery cells when using our recycled metals versus using metals from the market. This is a very important step for going through large-scale qualifications of many different customers. We were excited to receive financial support from the U.S. Advanced Battery Consortium and to now have this project closed out as we move forward with these different opportunities. Because of our increased operations and the successes working with our partners on these early-scale projects, last September, we were notified that we had been selected for a competitive grant from the U.S. Department of Energy for $144 million to now construct a second battery recycling plant.

Ryan Melsert: We were selected back in September 2024, and through an accelerated process, we were contracted in December 2024 and actually started this project back on January 1, 2025. We're excited to be taking all the lessons learned in our first recycling plant, working through our next-generation designs, and moving forward with a second battery recycling facility. While we work with a lot of automotive companies, the past half year, we really started to work even more with stationary grid battery systems. These large battery energy storage systems usually work to support grid operations. They tend to be extremely large in the gigawatt-hour scale and have a different type of load profile than we see within automotive batteries. Because we make battery-grade minerals, they work equally well whether they're sold to companies to make batteries for vehicles or batteries for stationary storage.

Ryan Melsert: Similarly, we receive both types of material into our recycling facility near Reno. A few months ago, we were fortunate enough to have been invited to the groundbreaking ceremony of one of the fastest supercomputers in the world at Argonne National Laboratory near Chicago. This supercomputer is backed up by large amounts of grid-scale batteries. It was great being able to join this ceremony. There were very few private companies actually in attendance. It was mostly different government organizations. To really highlight how the U.S. manufacturing of critical minerals supports data centers, supports supercomputers, and supports different types of artificial intelligence and machine learning operations, we were asked to present at this event to several dignitaries, including the U.S. Secretary of Energy, Chris Wright, back in July.

Ryan Melsert: Being able to explain to him directly at Argonne National Laboratory why both battery recycling and domestic lithium manufacturing are important to support data centers, supercomputers, and artificial intelligence operations as we move forward was significant. Because of our large amount of interactions with the U.S. Department of Energy, it was great to be able to connect with this new administration and really show them the benefits of the projects we're working on together. When we look at our primary focus on lithium hydroxide technologies, over the past several years, we have been building out this multi-ton per day integrated pilot facility near Reno. While we finished bench-scale operations a few years ago, it's very important to take those bench-scale results and actually build demonstration-scale integrated systems that operate in real time in a continuous fashion.

Ryan Melsert: This is a very big de-risking step as we look to be building out our commercial-scale lithium hydroxide refinery. Similarly, we were fortunate enough to have the buildup of this demonstration facility supported by a U.S. Department of Energy grant. This project also started in the fall of 2021, and as of a few months ago, we've also officially closed out this project and completed all requirements, showing how we went through the design, construction, commissioning, and then sustained operations in a multi-week run, showing how we feed our specific Tonopah Flats claystone material into this plant, go through each of the operating steps, and make a battery-grade lithium hydroxide product out the back end.

Ryan Melsert: We've made many different scales of samples to be sent out to different strategic customers and to be able to go through different types of analytical evaluations, tests, manufacturing different types of active cathode material, and again, making full-size battery cells with the lithium specifically extracted from our Tonopah Flats project. Because of the operations at our bench scale and these demonstration scale facilities, we have continued to go forward with the design of our commercial-scale 30,000-ton lithium hydroxide per year facility, working with our selected EPC firm, Black & Veatch, continuing to send these materials to customers for definition of different types of long-term offtake agreements as we progress that project. Building this demonstration facility has been great at advancing the technology and de-risking the construction, but a parallel effort is advancing our permitting progress for the local, state, and federal levels.

Ryan Melsert: We were excited a few months ago to have been selected by the White House, the National Energy Dominance Council, and the Fast-41 Permitting Council to have our Tonopah Flats lithium project be selected as a transparency priority project, which is really meant to streamline all federal permitting operations for high-priority critical mineral projects within the U.S. Being selected for this was important to really get alignment amongst many of the different federal agencies. This transparency priority project was really set up by the executive order that President Trump issued back on March 20, 2020. On top of becoming a transparency priority project, there was actually an escalation, and we were approved to become a full covered project just back in August.

Ryan Melsert: Now having our Tonopah Flats lithium project be a covered project, we have a project coordinator actually assigned to this effort, holding meetings amongst all different federal agencies, and really driving visibility and accountability as we move forward. In the past few weeks, we've seen very significant acceleration of these permitting efforts as we work to bring these different federal groups together. This Fast-41 Permitting Council works amongst all different federal agencies, including, we've mentioned that back in the spring, we did receive a letter of interest from the U.S. Export-Import Bank to provide a $900 million low-interest loan to support this Tonopah Flats lithium project. As a federal agency, this is also being facilitated through the Fast-41 Permitting Council and through our selection as a covered project. We mentioned we were added to the Russell 2000 index back at the end of June.

Ryan Melsert: Since being added, we have a different set of investors really owning and trading our stocks. We've seen a very significant increase in our trading volume per day since the end of June being selected, and also a big increase in the amount of institutional ownership. This has really provided many different types of discussions we've had with strategic investors since then, and has really facilitated different types of funding opportunities as we move forward. As a summary of our financial results for this fiscal year versus the previous one, as mentioned, a very substantial increase in revenue, really by increasing the operations and the ramp rates of our first battery recycling plant. Our cost of goods sold has increased, but at a lower % than our revenue has increased. As we continue to scale that plant, we expect to see continued improvements in our margin.

Ryan Melsert: We continue to receive funds from our government grants we have contracted, including ones that have started partway through the fiscal year. We do expect to see that increase as we ramp up those newer projects. Throughout the year, we were able to take in substantial funds through our financing activities and increase in funds used for our operating activities as we continue to ramp up our first recycling plant and a substantial decrease in our cash used for investing activities. As mentioned, our cash balance has increased substantially both at the end of the fiscal year and as of mid-September, as we continue to receive funds, really facilitated by that listing on the Russell 2000 index and the exercising of several of our outstanding warrants.

Ryan Melsert: We still have a large balance on our contracted government grants as these are multi-year projects that we continue to receive funds on as we move forward. We have received some competitive tax credits last spring that will still be monetized as we move forward and continue to build out our first recycling plant near Reno and our second recycling plant in the Southeast U.S. That's a summary of our financial results for the past fiscal year. We will be holding our annual shareholder meeting in November, at which time we will go through more details about the operations of our past year and some more of our multi-year operations as we look more forward looking. At this time, I'd like to thank everybody for joining this earnings call as we went through the details of both our fiscal fourth quarter and our full fiscal year.

Ryan Melsert: We look forward to seeing everybody in mid-November at our full annual shareholder meeting.