American Battery Technology Company

Good afternoon. I'm Tiffany Mooring, and I'm the Director of Communications and Marketing at the American Battery Technology Company. I would like to welcome everyone to our third quarter fiscal year 2025 earnings call. On behalf of the entire team at American Battery Technology Company, I would like to thank everyone for taking time to join our call today. Following this presentation, a recording of this call, along with our press release and our quarterly SEC filing will be available on our website at Investors.AmericanBatteryTechnology.com. This presentation includes forward-looking statements. Within the meeting of the safe harbor provisions of the U.S. Private Securities Litigation Act of 1995, these statements are subject to risk and uncertainties that can cause actual results to differ from those anticipated. Additional information regarding the factors that may cause actual results to differ can be found in today's quarterly filings. On today's call, our CEO and CTO Ryan Meltzer will provide remarks regarding our two lines of business, which include our lithium ion battery recycling business and our primary claystone to lithium hydroxide business. Ryan will answer a few questions that we've received recently, and then we'll end with closing remarks. It is now my pleasure to turn the meeting over to Ryan.

Great. Thank you, Tiffany. And thank you everybody for joining our quarterly financial statement presentation here. As mentioned, we'll do a quick overview of the company and our business units, then drive into each business unit themselves, and then talk through the financial results from this quarter. As many of you know, we are working to implement a closed loop supply chain within the domestic US. We do this by working with our partners in each of the other sectors in the field. and we are working to implement our battery recycling technologies into the domestic US. We currently receive waste material from companies in each of these different sectors, recycle them in our first recycling plant located near Reno, Nevada, and then sell these recycled metals back into the market. We're excited to be implementing our second recycling plant as we move forward to further increase the throughput of our recycling systems. While recycling plays a very large role in closing the loop and making sure that once metals are in the domestic supply chain that they stay there, we also have to fill this loop the first time. So in addition to our recycling technologies, we've also developed our own systems for how to access lithium in a domestic claystone-based resource in central Nevada. We've proven this technology out at the bench and pilot scales and are moving forward with our design and construction of a commercial scale system to make battery-grade lithium hydroxide, specifically from our US-based resource. From this quarter, we are excited that we have substantially increased the throughput at our first battery recycling plant. We've announced that we've more than doubled the total mass of batteries recycled over this quarter versus the previous quarter. And through substantial increases in recovery rates and product quality, while we've doubled the total mass of battery recycled, we've actually tripled the revenue generated during this quarter. And while we have substantially more material process generating more revenue, we've had only a very minor increase in the cash cost of goods sold as we have streamlined our operations at this plant and significantly improved our margins. In addition to the increased throughput at the recycling plant, we have moved forward with the sale of some of our legacy assets that aren't currently being used. This includes the sale of one of our properties and firmly Nevada for $6.75 million and also the sale of some of our attached legacy water rights for $4.7 million. As we sell these assets and move forward with those agreements, it allows us to apply additional funds and resources towards the expansion of our recycling plants and of our primary lithium systems. Over the past few months, we've moved to multi shift 24 seven operations at our first recycling plant. This is one of the large reasons why we were able to process significantly more material during this quarter compared to the previous one. And we continue to work with each of our strategic partners to source the commercial quantities of feed into the plant and to sell commercial quantities of recycled material out of the plant. As we work with each of these partners over the past few months, we're seeing a substantial shift in moving from one-off agreements into multi-year type partnerships. So we're excited to work with each of these OEMs on the automotive, the battery cell, the chemical refining, and the stationary energy storage markets to continue to move forward with these long-term agreements to source sustained amount of these materials into our facilities. In the current quarter, we've continued to ramp operations and look forward to reporting those results shortly. And our clay to lithium business we completed our fourth drill program a few months ago. Again, this program was meant to specifically increase the fidelity of data in the southern pit of our resource on the south side of our highway. And also to further expand our exploration of the property so we've now completed this program we've completed the assaying and characterization of all of these materials. And we'll be publishing the results of these shortly within our pre-feasibility study that shows the updated technical and financial performance of this project. We've been continuing to operate our integrated pilot plant that we designed over the past few years and first into operation last May. As we've moved from individual runs into sustained runs, We're proud that a few months ago we completed a continuous run of more than two weeks total, feeding large amounts of our clay material into this pilot plant and generating large amounts of lithium hydroxide out of it. We're currently analyzing this product and plan to be sending this as samples to each of our prospective customers as we continue to work through long-term offtake agreements for the commercial scale production from our planned 30,000 ton per year Tonopah Lithium Refinery down in central Nevada. As we continue to prove this technology out, both with these pilot plan operations and with our financial studies, we're excited that a few weeks ago we did receive a letter of interest from the Export-Import Bank of the US for a $900 million low interest loan that would support the construction of this commercial scale lithium refinery. As we've received this letter of interest, we've now met with the XM team in person about next steps and are excited about preparing our full application to continue to work with them as we move forward with this opportunity. As far as our financials for the quarter, again, we're excited that we have generated about a million dollars in revenue from this quarter with only minor increase in our cash costs of goods sold. As we continue to optimize the operations at our first recycling plant, we've taken in increased funds from government grants as we did have a new project kick off back in January. And use of cash really has pivoted away from needing to buy additional equipment for the recycling plants and instead is being applied towards the operations of this plant as we source additional feedstock and increase operations at this facility. We still have large amounts of government grants under contract, including our transferable tax credits, and we continue to work to monetize these as we move forward with our operations. So with that summary, I believe we have received a few questions from our shareholders, and we will go through a few of those now.

All right, Ryan, the first question that we've received from our retail shareholders is, This there have been many recent presidential executive orders relating to critical minerals, how are these expected to impact the operations at a at American battery technology company.

Yes, we're fortunate that both of our business units manufacturer critical minerals, so the critical mineral lithium in the hydroxide forum from our primary business. And then several different critical minerals from our better recycling business. It's great to see that both the previous and the current federal administrations really do support the construction of manufacturing facilities domestically for the manufacturing of critical materials. As far as the executive orders, there have been several that really do prioritize the construction of these facilities. And recently, there have been a few executive orders that really work to streamline the operations of permitting for these projects. for the mining and refining of these critical minerals and even for their recycling into manufactured products. So we do see these as very strong tailwinds for us as we move forward. We have had many discussions with the administration about how this could be best used to accelerate our progress, and we look forward to continuing to share that as we go forward.

Our next question is a three-parter. The first one is, what is the current operational status of the recycling plant? And is it running at full capacity? And are there any long-term contracts in place?

As we've shown, we have substantial increase in capacity of the plant this quarter versus the previous one, but there is even further growth to be had there. So these financials represent our operation since the end of March. And even since there, we have substantially increased the throughput of the plant. So we look forward to continuing to ramp our first recycling plants as we also go through the design and construction of our second facility. As mentioned, we are working with many of the large OEMs about multi-year contracts for the supply of feed material into the plant and also for the long-term offtake of products out of the plant.

And then our final question is, with the changing growth rates of electric vehicle sales, Are you seeing any impacts on your relationships with OEMs or with the quantity of materials in the domestic recycling market?

I think there's a perception that there's a slowdown in the sales of electric vehicles. A lot of the actual data shows that while it may not be growing as quickly as some people anticipated, there still are increases in total sales of electric vehicles in the U.S. and throughout the world. When we work with US-based automakers, we actually still do see quite a bit of growth in their market. And we're seeing a move with them really towards forming more of partnerships with other companies in the closed loop. So as we've continued to increase our relationship with each of these automakers, one of the reasons they want to move to these long-term agreements in a multi-year fashion is really to start to cement these relationships with companies that are both their suppliers and their customers. So we see more of a down select going on of just a small group of recyclers that are really able to meet the needs of the automakers and to process these materials responsibly. So as we continue to form those relationships, we look forward to being able to discuss those with everybody shortly.

So thank you for that, Ryan, and thank you to the retail shareholders for sending those questions in.

Yes, and thank you, everybody overall, for joining this session. These were the results of our third fiscal quarter. As we move forward towards the end of our fiscal year, we look forward to sharing our financials with you as we move forward. So thank you everybody again for joining this presentation.