Mentioned:
ABAT -16.31% IE -14.29%
American lithium production might be getting a new infusion of cash. And it’s coming from the United States Export-Import Bank.
What’s happening:
- American Battery Technology (NASDAQ: ABAT) has received a letter of interest from the United States Export-Import Bank for $900M USD in funding for their Tonopah Flats Lithium Project located in Nevada
Why it matters:
- Tonopah Flats Lithium Project is widely considered to be one of the single largest lithium deposits in America, containing more than 21.2M tonnes of lithium carbonate equivalent
Going deeper:
- The new funding from the United States Export-Import Bank would primarily go towards bringing the Tonopah Flats Lithium Project into production as well as constructing an on-site lithium hydroxide refinery for turning raw lithium into battery grade lithium
- The United States Export-Import Bank has been pouring funding into multiple publicly traded companies pursuing critical mineral production recently, including notably providing a letter of intent to Ivanhoe Electric (NYSE: IE) for $825M USD to advance their large scale copper deposit located in Arizona
Market reaction:
- American Battery Technology shares surged more than +33% following the announcement
The fine print:
- The funding is from the United States Export-Import Bank is not officially closed yet and will require more due diligence and regulatory approvals before becoming finalized
