AMERICAN BATTERY TECHNOLOGY Co (ABAT) Business

Business

Critical
Mineral Lithium-Ion Battery Recycling

ABTC
has developed a universal lithium-ion battery recycling system that is capable of recycling batteries with both a wide range of form
factors (packs, modules, cylindrical cells, prismatic cells, pouch cells, defect and intermediate waste cells, metal scraps, slurries,
and powders) and of a wide range of cathode chemistries (LCO, NCA, NMC) of various relative weighting of transition metals.

The
Company’s recycling system is a two-phase process: an automated de-manufacturing process followed by a targeted chemical extraction
train to separate the individual high-value metals. The automated de-manufacturing process separates the components of battery feedstock
material into its constituent components, including byproduct metals and cathode and anode powders in the form of black mass filter cake.
The byproducts are sold under various offtake agreements or into the open scrap market, and the black mass filter cake produced is either
sold under offtake contracts or further processed in ABTC’s proprietary chemical extraction train to extract lithium, nickel, cobalt,
manganese and other products and upgrade them to the battery grade specifications demanded by high energy density manufacturers.

The
Company has acquired and leveraged the experience of several members of its leadership and implementation teams who worked on the design,
construction, commissioning, and optimization of some of the largest lithium-ion battery manufacturing giga factories in the world. This
significant pool of experience has enabled the team to leverage their knowledge of the failure mechanisms that can cause battery components,
cells, and modules to fail leading to the development of an automated deconstruction process combined with a targeted hydrometallurgical,
non-smelting process that deconstructs battery packs to modules, modules to cells, cells to subcell components, and then sorting and
separating those subcell components in a strategic fashion. Because of our uniquely pioneered recycling process, we are able to realize
greater net benefits than current conventional methods. These benefits include:

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Additional
details regarding the recycling plant are discussed in Item 2. Properties.

Industry
Awards and Collaborations

In
September 2019, ABTC was selected as the sole winner of the battery recycling portion of the Circularity Challenge hosted by BASF, Stanley
Black & Decker, and Greentown Labs. BASF is one of the largest high-energy density cathode manufacturing companies in the US and
most significant global purchasers of critical minerals and materials. The challenge was developed to encourage new, innovative technologies
for the recycling of large-format lithium-ion batteries, with a goal to establish and develop a circular economy in the battery supply
chain. As the winner, ABTC received seed funding, access to the Greentown Labs facilities (see Item 2. Properties), and the exploration
of partnership agreements with the host companies.

In
October 2021, ABTC was awarded a competitively bid $2 million contract from the US Advanced Battery Consortium (“USABC”),
which is comprised of General Motors, Ford Motor Company, Stellantis NV, and the U.S. Department of Energy. The contract award was for
the commercial-scale demonstration of ABTC’s integrated lithium-ion battery recycling system, the production of high purity recycled
metals, the synthesis of high energy density active cathode material by BASF, and the fabrication of over 100 large format multi-layer
pouch cells from these recycled materials and the testing of these cells against otherwise identical cells made from virgin sourced metals.
The demonstration of this entire closed-loop battery manufacturing supply chain within a single project was to facilitate the establishment
of a domestic low-cost and low-environmental impact battery recycling infrastructure.

In
November 2022, ABTC was awarded a $10 million competitive grant from the U.S. Department of Energy for a three-year project to
demonstrate and commercialize ABTC’s next generation of technologies for its recycling of critical minerals. The first year of
this award was for the demonstration of these next generation technologies at the laboratory scale, in the second year these
technologies were optimized at the bench scale, and then in the third year these technologies will be constructed and operated at
commercial scale in ABTC’s critical mineral recycling facilities.

In
March 2024, ABTC was selected for a competitively awarded investment tax credit for $19.5 million by the U.S. Department of Energy and
administered by the U.S. IRS through the 48C program to support the construction and scale-up of ABTC’s first critical mineral
battery recycling facility.

In
September 2024, ABTC was selected for a competitively awarded $150 million grant from the U.S. Department of Energy to support the construction
of ABTC’s second critical mineral battery recycling facility. This four-year grant supports the construction of a recycling facility
designed to process 100,000 tonnes per year of battery material and to manufacture high purity critical mineral products and byproducts.

In
March 2024, ABTC was selected for a competitively awarded investment tax credit for $40.5 million by the US Department of Energy and
administered by the U.S. Internal Revenue Service through the 48C program to support the construction and scale-up of ABTC’s second
critical mineral battery recycling facility. This transferrable tax credit may be utilized directly by ABTC or sold and transferred to
a third-party.

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Industry
Competition

ABTC
recovers and manufactures several types of products and byproducts through its recycling processes and competes with two categories of
producers of these critical minerals: competing recycling processors and facilities and primary producers of the battery materials.

Competing
recycling processes and facilities are primarily located in the United States, Europe, South Korea, and China and employ various techniques
for extraction of the contained battery metals. In general, processors that employ high-temperature thermal processes or shredding/solvent
extraction techniques focus on the recovery of nickel and cobalt, with limited ability to recover lithium, manganese, or other metals.
The Company’s process to extract each of the battery components enables the Company to extract additional value from the same amount
of feedstock to enable low-cost and low-environmental operations.

Primary
producers of lithium, nickel, cobalt, and manganese are distributed globally. Lithium production is largely located in the Americas,
Australia, and Asia. Approximately two-thirds of cobalt production is sourced from the Democratic Republic of Congo. Nickel production
is dominated by Indonesia, China, and Australia. Manganese production is concentrated in South Africa, Australia, and China.

The
commodities and specialty chemicals that are ultimately used by cathode manufacturers are required to meet stringent specifications,
whether that mineral is sourced from a primary or a secondary resource. Thus, the competition in these markets is largely based on product
quality and reliability of supply.

Primary
Resource Development & Refining

In
addition to its battery recycling operations, the Company has been designing and optimizing its internally developed sustainable lithium
extraction process for the manufacturing of high purity lithium hydroxide from Nevada-based sedimentary claystone primary resources.
(See Item 2. Properties for additional information).

The
Company has conducted geological mapping, sampling, geochemical analysis, and proprietary extraction trials to characterize the resource
and to quantify the performance of the lithium extraction and manufacturing operations. In parallel with the current exploration activities,
the Company has designed, constructed, and is operating a multi-tonne per day integrated demonstration scale facility to process sedimentary
resource from the project. This facility is intended to demonstrate the commercial viability of the Company’s extraction and refining
processes.

The
Company’s in-house developed extraction technologies do not require the inefficient evaporation ponds associated with conventional
lithium-from-brine mining. Our extraction process utilizes a selective leaching process for the low-cost extraction of lithium from claystone
sedimentary resources that allows for significantly lower consumption of acid, lower levels of contaminants in the generated leach liquor,
and lower overall costs of production.

Industry
Awards and Collaborations

In
January 2021, ABTC was selected for a competitively awarded $2.3 million grant from the U.S. Department of Energy to support the design,
construction, and operation of a multi-tonne per day integrated demonstration system for ABTC’s internally-developed technologies
for the manufacturing of high-purity lithium hydroxide from domestic Nevada-based claystone resource. Through this project ABTC processed
tonne-level quantities of claystone material from its lithium resource near Tonopah, Nevada, and manufactured large quantities of high-purity
lithium hydroxide that have been delivered to global customers for evaluation.

In
September 2022, ABTC was selected for a competitively awarded $58 million grant from the U.S. Department of Energy to support the design,
construction, and operations of the first train of ABTC’s commercial claystone-to-lithium hydroxide refinery near Tonopah, Nevada.
This first train is designed to manufacture approximately 5,000 tonnes per year of lithium hydroxide, and the full facility is designed
to manufacture 30,000 tonnes per year of lithium hydroxide.

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In
April 2025, ABTC was awarded a Letter of Interest from the U.S. Export-Import bank (“EXIM”) for a $900 million low-interest
loan to support the expansion of ABTC’s claystone-to-lithium hydroxide refinery near Tonopah, Nevada from 5,000 to 30,000 tonnes
lithium hydroxide per year capacity. ABTC and EXIM are currently undergoing due diligence efforts on this low-interest loan.

Industry
Competition

Primary
lithium production is concentrated in the Americas, Australia, and Asia. The lithium that is ultimately used by cathode manufacturers
is required to meet stringent specifications, whether that mineral is sourced from a primary or a secondary resource. Thus, the competition
in these markets is largely based on product quality and reliability of supply.

Employees

As
of September 8, 2026, the Company had 191 full-time and 4 part-time employees. Additional workers may be hired on a contract
basis as needed.

Available
Information

We
are subject to the information and periodic reporting requirements of the Exchange Act, and, in accordance therewith, we file periodic
reports, proxy statements and other information with the SEC. We make available, free of charge, our Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q, Current Reports on Form 8-K and amendments to these reports on our website at https://americanbatterytechnology.com/
as soon as reasonably practicable after those reports are electronically filed with, or furnished to, the SEC.