Investment Thesis For American Battery Technology Company (ABTC) - Disrupting Battery Recycling by Delivering 100% Green Recycling for closed loop battery life cycles Summary: ● The Lithium Ion Battery Industry is rapidly growing. In 2020 there are approximately 250k tons of end of life (EOL) batteries being placed on the market, by 2025, there will be 700k tons, representing an approximate 22% CAGR. ● That batteries reach the end of their lives does not mean that they automatically become available for recycling. In fact only about 50 per cent of the batteries that reach end-of-life find their way to recyclers around the world. The reasons for this are many: batteries are stored or hoarded, they are disposed of but not recycled, or they are reused in other applications. (Source for both above comments: GBA_EOL_baseline_Circular_Energy_Storage.pdf (weforum.org) ) ● The United States will be able to instead stockpile critical minerals in order to secure our place on the global stage as resource independent. By recycling rare earth minerals, the supply chain becomes secured inside the United States. ● ABML will (has) develop strategic partnerships with BASF. ABTC was the sole winner of BASF's Circularity Challenge. This was a global competition where BASF challenged companies throughout the world to develop new innovative technologies for the recycling of large format lithium-ion batteries. ABTC and BASF have been exploring several avenues of working together to accelerate the commercialization of this lithium-ion battery recycling technology. ABTC has been in the Greentown Labs for over 1 year developing the recycling technology which is certified battery grade from BASF. Qualitative: ● ABTC is a technology and commodity company - targeting critical mineral production from both recycled and virgin sources: ○ ABTC has developed a universal lithium-ion battery recycling system ■ They’re able to recycle a wide range of battery forms: (packs, modules, cylindrical cells, prismatic cells, pouch cells, defect and intermediate waste cells, metal scraps, slurries, and powders) ■ The process also accepts various 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 process does not employ high temperature operations or bulk chemical treatments of the full battery. This process is inherently more "green" and reaffirms ABTC's deep commitment to environmental stewardship. ■ The throughput of the system is very fast, which leads to a high output of total batteries recycled (3 hours from beginning to end). (American Battery Metals Corporation Issues Shareholder Letter (irdirect.net)) ○ ABTC has been working with several lithium-rich resource owners within the Clayton Valley area of Central Nevada, to analyze and characterize sample materials from various locations. ■ They have been performing bench scale trials on an internally developed first-of-kind selective leaching process for the low-cost extraction of lithium from these claystone resources. ABTC is considering preparing and submitting an initial provisional patent application for this technology. ○ ABTC’s exploration efforts are currently focused on the sampling and characterization of it’s 647 placer mining claims - consisting of lithium-bearing brine and claystone sedimentary resources in the Western Nevada Basin (WNB). Quantitative ● First Year of 20kT of battery recycling ○ $160M based off today’s critical mineral prices; 80% EBITDA after phase 2 ○ Initial Pilot plant to cost $15M for the phase 1 revenues at ~$3500/ton ○ Phase 2 will cost a further $15M for ~$8000/ton ● Company plans on scaling to 200kT/annum plant(s) with Commercial Pilot plant revenue ○ Revenue projection of $800M per 200kT plant. ● 473m Shares Outstanding as of 12/17/20. ○ ~50M warrants exercisable in 2023-2024
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