American Battery Technology Posts First Annual Adjusted Profit

American Battery Technology reported fiscal 2026 revenue of $21.7 million, a surge of more than 400% from the prior year, according to data cited by GN markets/earnings (en-US). The company achieved its first annual adjusted profit, recording $1.7 million in adjusted gross profit compared to a $6.2 million loss in fiscal 2025. This financial turnaround was driven by higher throughput at its primary recycling facility, expanded byproduct manufacturing, and improved pricing for processed materials.

The company’s cost of goods sold increased by approximately 67% during the period, a rate significantly lower than revenue growth. Management attributed this margin improvement to economies of scale and operational efficiencies. On a cash basis, operational spending at the facility declined by roughly 16% despite the higher volume of battery feedstock processed, indicating improved unit economics as the plant scaled operations.

Balance Sheet Strength and Debt Elimination

As of the end of June, American Battery Technology held approximately $49.5 million in cash and a total asset base of about $133 million. A key financial milestone was the elimination of all long-term outstanding debt by the end of fiscal 2026. This deleveraging reduces interest expenses and provides the company with greater financial flexibility to fund ongoing capital expenditures and operational expansions without the burden of senior debt service.

Expansion of Recycling Infrastructure and Partnerships

The company’s first recycling facility, with a design capacity of roughly 20,000 tons per year, continues to process feedstock from grid-scale energy storage, electric vehicles, and consumer electronics. American Battery Technology secured a contract for one of the country’s largest lithium-ion battery cleanup projects involving grid-scale systems. Additionally, the firm established a partnership with The Battery Network to collect consumer batteries nationwide, expanding its supply chain integration.

Plans for a second recycling plant in the Southeast United States are advancing, with a target capacity of 100,000 tons annually. The company is pursuing a $150 million Department of Energy grant to support the construction and deployment of this facility. Separately, a $10 million DOE grant is being utilized to commercialize three next-generation recycling technologies previously tested at the laboratory scale, aiming to integrate these advanced processes into its broader operations.

Regulatory Constraints on Black Mass Exports

A recent directive from the U.S. Department of Commerce has restricted the export of black mass, a key byproduct of battery recycling, unless specific exceptions are granted. American Battery Technology is currently storing black mass on-site while its exception request remains under review. This regulatory shift creates near-term logistical challenges but underscores the strategic importance of domestic recycling capabilities. The company’s Tonopah Flats lithium project has also advanced into the full NEPA review process, continuing to produce lithium hydroxide samples for customer qualification.