American Battery Technology Co. Q4 FY2026 earnings call

• Financial Performance & Efficiency: Revenue increased by over 400% year-over-year to $21.7 million, while Cost of Goods Sold (COGS) rose only 67%, indicating strong economies of scale. The company achieved its first annual adjusted profit with an adjusted gross profit of approximately $1.7 million, compared to a $6.2 million loss in the previous year. Cash spend on operating activities decreased by about 16% despite higher throughput due to operational efficiencies.
• Cash Position & Debt: The cash balance increased to approximately $49.5 million as of the end of June 2026. The company extinguished all long-term outstanding debt, maintaining zero long-term debt and strengthening its total asset base to approximately $133 million.
• Recycling Operations: The first recycling plant is ramping up toward its 20,000 tons per year design rate. Feedstock sources include grid-scale energy storage batteries (supporting data centers/AI), electric vehicles, cell manufacturing waste, and consumer electronics. A partnership with The Battery Network (formerly Call2Recycle) facilitates nationwide collection. The company secured one of the largest lithium-ion battery cleanup projects in U.S. history.
• Expansion Plans: Development continues on a second recycling plant in the Southeast U.S., designed to process 100,000 tons per year, supported by a $150 million U.S. Department of Energy (DOE) grant. Additionally, a $10 million DOE grant supports the commercialization of next-generation recycling technologies proven at bench scale.
• Claystone/Lithium Business: The Tonopah Flats Lithium Project in Nevada is advancing through the NEPA process with the Bureau of Land Management (BLM). The BLM accepted the plan of operations, moving the project into the full NEPA phase. The site was selected as a priority project by President Trump’s National Energy Dominance Council and FAST-41 Permitting Council for streamlined federal permitting. An integrated demonstration facility is producing battery-grade lithium hydroxide for customer qualification.
• Government Relations: The company maintains strong support from the DOE, having successfully appealed and reinstated a previously canceled grant. DOE leadership recently toured both the operating recycling plant and the claystone processing demonstration facility.

The company operates two primary business segments: Lithium-Ion Battery Recycling and Claystone-to-Lithium Hydroxide Production. For the fiscal year ended June 2026, the Lithium-Ion Battery Recycling segment generated approximately $21.7 million in revenue, representing a substantial increase of over 400% compared to the prior year. This growth was driven by increased throughput at the first recycling facility, which has a design capacity of 20,000 tons per year, as well as improved pricing for sold products and additional manufacturing of byproducts. The Claystone-to-Lithium Hydroxide segment did not report specific standalone revenue figures for the period; however, the company highlighted operational milestones including the completion of a pre-feasibility study demonstrating 21.3 million tons of potential lithium hydroxide production from on-site resources, and the successful production of large-scale batches of battery-grade lithium hydroxide for customer evaluation. While exact revenue contribution percentages for each segment are not explicitly detailed in the transcript, the significant revenue growth is attributed primarily to the scaling of the recycling operations.

• Maintenance of Financial Trajectory: Management indicates that the company is in a strong position to continue growing, leveraging the financial stability provided by the $49.5 million cash balance and zero debt. No specific quantitative revenue or earnings guidance for future quarters is provided in this transcript.
• Operational Scaling: Guidance implies continued scaling of the first recycling plant toward its 20,000 tons per year capacity. The company plans to draw down funds from existing government contracts over the next few years to support these operations and expansions.
• Regulatory Monitoring: Management notes they are monitoring the outcome of their exception request regarding the U.S. Department of Commerce's directive banning black mass exports without permission. Short-term guidance suggests storing black mass product until a resolution is reached, rather than exporting it.

• Regulatory Export Restrictions: The U.S. Department of Commerce issued a directive effectively banning the export of black mass unless an exception is obtained. The company has submitted an exception request but has not yet received a formal response, leading to short-term storage of inventory at their facility.
• Permitting Delays: The Tonopah Flats Lithium Project is still navigating the NEPA process with the BLM. While the plan of operations was accepted, the full NEPA process must be completed before permits for site work and construction can be granted, posing potential timeline risks.
• Grant Dependency and Uncertainty: The company relies heavily on DOE grants for expansion (e.g., the $150 million grant for the second plant). Although one grant was successfully reinstated after cancellation, reliance on government funding introduces political and administrative risks.

Q: What are the implications of the new U.S. Department of Commerce directive on black mass exports, and how is management mitigating the immediate impact on operations?

A: Management disclosed that the Commerce Department issued a directive banning black mass exports without specific exceptions. The company has submitted an exception request and is awaiting a formal response after providing additional information. In the interim, the company is storing its black mass inventory at its facility rather than exporting it, working closely with the DOE and other federal agencies to navigate the regulatory review process.

Q: Can you provide more detail on the progress of the Tonopah lithium project and the significance of the recent BLM decision?

A: The Tonopah Flats Lithium Project has completed baseline studies and received certification from the BLM accepting its plan of operations. This marks the end of the pre-NEPA phase and allows the project to enter the full NEPA permitting process. This milestone is critical as it moves the project closer to obtaining final permits for site work and construction, following its selection as a priority project for streamlined federal permitting.

Q: How did the company achieve profitability despite increasing throughput, and what does this suggest about future margins?

A: The company achieved its first adjusted profit by implementing significant operational efficiencies and achieving economies of scale at its first recycling plant. Revenue grew over 400% while COGS increased only 67%, and cash operating costs decreased by 16%. Management indicated that these efficiencies and the high capacity factor of the plant are key drivers, suggesting that continued scaling will likely sustain or improve margin performance as fixed costs are spread over higher volumes.

Q: What is the status of the second recycling plant in the Southeast, and how is it being funded?

A: The company is continuing development of a second recycling plant in the Southeast U.S., designed with a capacity of 100,000 tons per year. Construction and rollout of this facility are supported by a $150 million grant from the U.S. Department of Energy. This expansion aims to address domestic needs and synergize with the claystone-to-lithium hydroxide processing capabilities.

Q: How is the company managing its relationship with the DOE, particularly regarding the reinstatement of the canceled grant?

A: Management highlighted a successful appeal process where they worked closely with the DOE to reverse the termination of a previously canceled grant. After several months of engagement, the grant was fully reinstated with the same funding and milestones. This outcome underscores the company's ability to maintain strong federal support and secure critical funding for its technology commercialization and facility construction efforts.