American Battery Technology Company (ABTC) is making waves in the lithium extraction scene, claiming to have “cracked the code” for extracting lithium from sedimentary clays in central Nevada. This isn’t just another mining operation; it’s a game-changer. During a recent tour of their lithium-ion battery materials plant at the Tahoe Reno Industrial Center, ABTC’s Director of Engineering, Mitch Dreier, laid out the company’s innovative approach. Unlike traditional methods that often result in excess minerals and a mess of byproducts, ABTC’s proprietary selective leach extraction method zeroes in on lithium, minimizing waste and making the whole process cleaner and more efficient.
Dreier emphasized that ABTC is indeed a technology company at its core, intent on developing first-of-their-kind methods and scaling them up. With a team seasoned in scaling large factories and a robust in-house R&D crew, they are well-equipped to tackle the lithium supply chain hurdles that have been plaguing the industry. This isn’t just about getting lithium out of the ground; it’s about doing it smarter, with less environmental impact.
Currently, the U.S. has only one lithium mine in operation—Albemarle’s Silver Peak mine, which extracts lithium from brine. But extracting lithium from clay is a different kettle of fish; it’s more like chemical refining than traditional hard rock mining. ABTC is gearing up to deploy its selective leach extraction process at the Tonopah Flats lithium project, which spans over 10,300 acres. This project is crucial, as the demand for lithium continues to skyrocket with the electrification of transportation and energy storage systems.
In a significant boost for their ambitions, ABTC received a $57 million grant from the U.S. Department of Energy to build a commercial-scale lithium hydroxide refinery at the Tonopah Flats site. This facility is designed to initially process 5,000 metric tons of lithium hydroxide monohydrate annually, with the potential to ramp up to 30,000 metric tons. The refinery will occupy about 120 acres, with room for future expansion. Dreier highlighted that this grant was awarded against traditional mining methods, showcasing the confidence in ABTC’s innovative approach.
The financial commitment is substantial, with an initial capital requirement of $785 million for Phase 1. However, Dreier pointed out that processing materials on-site will eliminate many inefficiencies associated with transporting raw materials elsewhere for processing. The claystone lithium resource at Tonopah Flats is not only consistent but also shallow, meaning less time and resources spent on overburden removal. This accessibility is a significant advantage in the mining game.
Permitting for both the mine and refinery is currently underway, with hopes to receive a Record of Decision by 2025. The company is collaborating with Black and Veatch on the refinery design, leveraging insights gained from their pilot plant operations. They produced their first battery-grade lithium in May 2024, and the operation is continuously being refined.
ABTC isn’t putting all its eggs in one basket either. They’re tackling lithium supply chain issues from multiple angles, including a proprietary recycling process for lithium-ion batteries. Dreier articulated the need for both new mines and recycling operations to meet the growing demand for lithium. “If the pot is growing, you can’t just use the same ingredients over and over again; you need to add more ingredients to the pot,” he said.
As the domestic battery supply chain struggles to keep pace with demand, ABTC’s dual approach of mining and recycling could be the lifeline the industry needs. With electrification on the rise and companies pouring billions into battery manufacturing, the pressure is on to secure a reliable lithium supply. ABTC’s innovative extraction methods and commitment to sustainability could very well set a new standard in the mining sector, reshaping how we think about resource extraction in an era where environmental concerns are paramount.
