Core Viewpoint - American Battery Technology Co. (ABAT) faced a significant setback as the U.S. Department of Energy (DOE) terminated its $115 million federal grant for a lithium hydroxide project in Nevada, leading to a 27% drop in stock price despite the company's optimism about the project's future [1][8]. Group 1: Grant Termination - The DOE's grant was part of the Manufacturing Energy Supply Chain program aimed at enhancing U.S. supply chain independence for electric vehicle (EV) batteries [2]. - The termination occurred after a review of federal clean-energy spending initiated by the Trump administration, with ABAT confirming the cancellation on October 9 and noting that approximately $52 million in reimbursable DOE funds remained unused at that time [3]. Group 2: Company Response - Following the grant's termination, the company formally appealed the decision and plans to seek resolution through DOE dispute channels, asserting its commitment to continue the project [4]. - ABAT has raised over $52 million from public markets this year and secured a letter of interest from the U.S. Export-Import Bank for up to $900 million in potential financing for its lithium extraction and refining operations in Nevada [5]. Group 3: Project Status - The Tonopah Lithium Flats Project retains its status as a "Transparency Priority Project" under the National Energy Dominance Council and is listed on the federal FAST-41 permitting dashboard, indicating its strategic national importance [6]. - A pre-feasibility study published by the company confirms the project's potential, emphasizing the need for domestic sourcing of critical minerals amid current restrictions [7].