05:45 AM EDT, 10/16/2025 (MT Newswires) -- American Battery Technology ( ABAT ) shares were down 24% in recent premarket activity Thursday after the company said Wednesday that the US Department of Energy terminated a grant related to a $115.5 million lithium hydroxide project.

Under the grant, the company and the DOE's cost share was $57.7 million each, according to a regulatory filing. The grant was part of an agreement with the department was for the design, construction, commissioning, and operation of a facility to manufacture battery cathode-grade lithium hydroxide.

"The company submitted an appeal of the termination, and intends to pursue its dispute resolution remedies in connection with the termination of the grant," American Battery ( ABAT ) said in the filing, adding that the termination followed an audit of all grants awarded through the DoE's Manufacturing Energy Supply Chain office.

American Battery Technology ( ABAT ) said it has raised more than $52 million from the public markets. "Regardless of the outcome of the appeal process, the company intends to move forward with the project without impact to timeline or scope," American Battery Technology ( ABAT ) said.