What American Battery Technology Company told the SEC could break it.

American Battery Technology's revenue is highly concentrated in a few buyers: revenue from three major customers accounted for 74% of fiscal-year-ended June 30, 2025 revenue; as an early-commercial recycler selling recycled ferrous/nonferrous metals and black mass, the loss, non-renewal or reduced offtake from any of these few (undisclosed) customers would materially reduce its revenue.

“Revenue from three major customers during the years ended June 30, 2025 and 2024 accounted for 74 % of the fiscal year ended June 30, 2025 revenue.”

American Battery Technology's recycling and primary-extraction economics depend on the prices and availability of battery metals (lithium, nickel, cobalt, manganese) whose primary production is geographically concentrated and politically exposed: approximately two-thirds of cobalt production is sourced from the Democratic Republic of Congo, nickel is dominated by Indonesia, China and Australia, and manganese is concentrated in South Africa, Australia and China — so swings in these commodity markets and supply from those jurisdictions directly affect the value of its recovered products and its competitiveness versus primary producers.

“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 lithium-ion battery value chain that American Battery Technology operates within is heavily concentrated in Asia: cell manufacturing is concentrated in Asia with China accounting for over 70% of global cell-manufacturing capacity, and the majority of existing battery-recycling/refining operations are located in China and South Korea — so its strategy of building domestic U.S. capacity competes against, and is exposed to pricing pressure from, an incumbent Asia-centric supply chain, and U.S. trade/onshoring policy shifts could materially change its competitive position.

“Cell manufacturing is also currently concentrated in Asia, with China accounting for over 70 % of global cell manufacturing capacity.”

American Battery Technology's project economics rely heavily on U.S. federal grant funding: it was selected for a five-year, $115.5 million DOE-budgeted project to build a first-of-kind lithium-hydroxide refinery from Nevada claystone, plus additional cost-share grants (up to $57.7M, $20.0M and $10.0M, generally reimbursing up to 50% of eligible expenditures) — several only a small fraction invoiced to date (e.g. ~8% of the $57.7M award) — so changes in federal funding priorities, appropriations, award negotiation outcomes or its ability to meet reimbursement conditions could impair financing of its first-of-kind facilities.

“the U.S. DOE announced that the Company had been selected for award negotiation for a five-year project with a total budget of $ 115.5 million to design, construct, and commission a first-of-kind lithium hydroxide refinery using Nevada-based claystone as the feed”