Oct 15 (Reuters) - American Battery Technology ( ABAT )

said on Wednesday the U.S. Department of Energy has terminated

its grant for the setting up of a facility for the manufacturing

of battery cathode grade lithium hydroxide.

Under the grant, DOE's Manufacturing Energy Supply Chain

office would contribute $57.7 million, while the company would

put in an equal amount towards the facility.

Reimbursable DOE funds of about $52 million remained as of

October 9, the company said.

The termination followed a May notice that all MESC grants

would undergo audits under a DOE memorandum.

The company said it has appealed the termination and plans

to pursue dispute resolution remedies.

Despite the setback, the company said it has raised over $52

million from public markets this year and will continue the

project without changes to its timeline or scope.

In April, the company received a letter of interest from

U.S. Export-Import bank for $900 million in financing to support

construction of its Nevada-based lithium mine and refinery.