AMERICAN BATTERY TECHNOLOGY Co (ABAT) Business

Business

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 (lithiated cobalt oxide, lithiated nickel-cobalt-aluminum oxide,
lithiated nickel-cobalt-manganese oxide, lithiated nickel-cobalt-manganese-aluminum oxide, lithiated nickel-oxide, and lithiated
manganese-oxide) 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 Company intends to commission each phase in sequence. Phase 1, the automated
de-manufacturing process, separates the components of battery feedstock material into its constituent components, including scrap metals
and cathode and anode powders in the form of black mass filter cake. Scrap metals are then sold as byproducts under various offtake agreements
or into the open scrap market. The black mass filter cake produced in this phase will also be sold under offtake contracts or into the
open market. Upon commissioning of Phase 2, the black mass produced in Phase 1 will be fed into a proprietary chemical extraction train
to extract lithium, nickel, cobalt, manganese and other products and upgrade them to the battery cathode grade specifications demanded
by high energy density cathode manufacturers.

6

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 one 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 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:

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

Industry
Collaborations

In
September 2019, the Company 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 lithium-ion battery metal 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. Participants were asked to demonstrate their ability to recycle an end-of-life lithium-ion battery into battery
grade minerals that could then be used for the manufacture of new lithium-ion batteries. As the winner, the Company received seed funding, access to the Greentown Labs facilities (see Item 2. Properties), and the exploration of partnership agreements with the host companies.
The Company and BASF continue to explore several avenues of collaboration to accelerate the commercialization of the Company’s
lithium-ion battery recycling technology.

In
October 2021, the Company, received a competitively bid $2 million contract award from the US Advanced Battery Consortium
(“USABC”). USABC is a subsidiary of the United States Council for Automotive Research LLC and enabled by a cooperative agreement
with the U.S. Department of Energy (DOE). The member companies include General Motors, Ford Motor Company, and Stellantis NV. USABC’s
mission is to develop electrochemical energy storage technologies that advance commercialization of next generation electrified vehicle
applications. The objective of the contract award is for the commercial-scale development and demonstration of an integrated lithium-ion
battery recycling system, the production of battery cathode grade metal products, the synthesis of high energy density active cathode
material from these recycled battery metals by cathode producer and lithium-ion battery recycler BASF, and the fabrication of large format
automotive battery cells from these recycled materials and the testing of these cells against otherwise identical cells made from virgin
sourced metals by cell technology developer C4V. The demonstration of the entire closed-loop battery manufacturing supply chain within
a single project is meant to foster the establishment of a domestic low-cost and low-environmental impact battery recycling infrastructure

Competition

The
Company expects to recover several types of byproducts as well as battery cathode grade lithium, nickel, cobalt, and manganese products
through its recycling process and will compete with two categories of producers of these commodities: competing recycling processers
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, processers 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.

7

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 our internally developed sustainable lithium extraction process for the manufacturing of battery
cathode grade lithium hydroxide from Nevada-based sedimentary claystone primary resources. (See Item 2. Properties for additional information).

The
Company is currently conducting 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 will continue to analyze the economic competitiveness of the project throughout the demonstration phases.

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
Collaborations

In
October 2021, the Company, as the primary grantee, with DuPont Water Solutions as a sub-grantee, was awarded a $4.5 million competitive
grant through the US Department of Energy’s Advanced Manufacturing Office, Critical Materials Innovation program to advance the
research, development, and commercialization of its technologies for the mining and manufacturing of battery grade lithium hydroxide
from its lithium-bearing claystone deposits. The grant provided partial funding for the development of a multi-tonnes per day processing
facility to implement its lithium refining technology at pilot facility scale which was commissioned in the fourth quarter of fiscal
year 2024.

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 15, 2025, the Company had 157 full-time and 6 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 Securities Exchange Act of 1934, as amended, and, in accordance
therewith, we file periodic reports, proxy statements and other information with the Securities and Exchange Commission (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.