American Battery Technology Shares Traded Lower Monday: What's Going On?

American Battery Technology Company (NASDAQ:ABAT) shares are trading lower Monday amid a pullback in the battery sector on recent reports that the Department of Energy canceled more than $700 million in battery and manufacturing awards.

What To Know: According to Yahoo News, the Energy Department terminated funding for multiple companies in October, including Ascend Elements, American Battery Technology Co., Anovion, ICL Specialty Products, and LuxWall. The department said the affected projects had "missed milestones" and "did not adequately advance the nation's energy needs" or provide a positive return on taxpayer investment.

American Battery Technology was awarded a $57.7 million grant in 2022 to develop a commercial-grade cathode material facility in Nevada and another $123 million in 2024 for a second facility. The company confirmed that the more recent grant was not impacted by the cancellations and stated it intends to move forward with its Nevada project "without impact to timeline or scope."

The DOE cuts follow broader efforts by the Trump administration to scale back Biden-era green energy projects, with more than $7.5 billion in funding already eliminated this year.

Shares of American Battery Technology are under pressure as investors react to reduced federal support for the sector and uncertainty surrounding future project funding.

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ABAT Price Action: American Battery Technology stock was down 9.8% at $5.39 on Monday, according to data from Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.