Critical minerals have been a hot topic over the past year or so.

The U.S. specifically has made strategic investments into some public companies that produce different critical minerals like:

• USA Rare Earth.
• MP Materials.

What’s going on? The world needs critical minerals for products, defense, construction, and more.

They often have to rely on other countries to get it though - China specifically is a massive exporter of critical minerals.

So, countries are looking for a solution - and certain critical mineral producers are seeing investment increase as we result.

One of those companies has been American Battery Technology Co (ABAT). 

It’s become a major innovator in the lithium space and has managed to grow in the past few years while other lithium companies have fallen.

By the way - lithium is considered a critical mineral.

And while the U.S. is not currently investing into ABAT, other investors have taken interest, as the stock has jumped over 300% since November, 2026.

• The S&P 500 is up only around 21% in that same time frame.

In fact, the stock is a part of our Briefs Finance Fund - along with other potential lithium and critical mineral stocks.

Which ones? Subscribe to Market Briefs Pro to get our full list of what we’re investing in right now.

Today, let’s break down ABAT - its approach to lithium, the market shift happening now, and what else investors need to know.

What Makes ABAT Stock Different

ABAT isn't trying to mine more lithium out of the ground. Instead, they're doing something smarter: recycling it.

Think of dead EV batteries as gold mines. When a battery reaches the end of its life after 5-10 years, it still contains valuable lithium, cobalt, and nickel. 

ABAT takes those batteries, breaks them down, and extracts the materials to make new batteries.

It's like urban mining, but for lithium.

Here's why that matters: the U.S. government wants less dependence on Chinese lithium. So they're throwing money at companies like ABAT to build domestic supply chains.

As of 2024, ABAT has received over $237 million in Department of Energy funding to scale its lithium recycling operations.

The Strategy That's Actually Working

While competitors burned through cash trying to build massive facilities overnight, ABAT took a different approach: move slow, stay focused.

The company spent years perfecting its technology at a single commercial facility before expanding. That discipline allowed ABAT to preserve cash while others ran out of runway.

Now? It's paying off.

By mid-2025, ABAT proved its Direct Lithium Extraction technology works at scale. 

They became a strategic partner to U.S. automakers looking to secure domestic lithium supply. And they announced plans for a second commercial facility.

The result: shares up 320% since November 2024 as of February 6th, 2026.

Why Lithium Recycling May Soon Explode

Right now, recycled lithium contributes around 1% to global supply. But that number is projected to hit 7% by 2030 and potentially 10% by 2040.

Why the jump? As more EVs hit the road, more batteries will eventually die. Those dead batteries become the feedstock for companies like ABAT.

Plus, the U.S. government is incentivizing domestic lithium production with both subsidies and tariffs on Chinese imports. 

ABAT positioned itself perfectly to capitalize on this "carrot and stick" approach.

The Market Shift Driving ABAT Higher

This isn't just about one company. It's about a fundamental market shift.

Lithium demand has increased 400% since 2020, driven almost entirely by electric vehicles. 

Global battery demand grew 40% between 2022 and 2023 alone. 

And with AI data centers and grid storage adding unexpected demand, the pressure on lithium supply is intensifying.

Meanwhile, new lithium mines take 5-10 years to become operational. The price of lithium skyrocketed from around $10,000 per metric ton in 2021 to $50,000 in 2022.

Companies that can provide stable, domestic lithium supply - even through recycling - are becoming increasingly valuable.

What Investors Need to Know About ABAT Stock

The company is still relatively small compared to mining giants, which means higher volatility but also more room to grow.

Unlike failed competitors like Li-Cycle (which burned through cash and nearly went bankrupt), ABAT has:

• Proven technology with government backing.
• A methodical scaling strategy.
• Strong partnerships with U.S. automakers.
• Plans for expansion without overleveraging.

The company is still working toward full-scale profitability, but government funding provides a financial cushion that many competitors don't have.

The risk? There’s no guarantee this growth story will play out. 

Recycling may not become the next big thing in lithium - or costs and demand could shift as technology changes.

Plus, ABAT has been an inspiring growth story recently - but over the last 5 years, shares of ABAT are down around 92% as of February 6th, 2026.

If these risks happen, ABAT could fail - so investors should always do their own due diligence and understand the risks before investing.

The Bottom Line on ABAT Stock

American Battery Technology Company is betting that domestic lithium recycling will become essential as supply shortages intensify. 

With $237 million in government backing, proven technology, and a disciplined approach to scaling, ABAT has positioned itself as a potential winner in the lithium economy.

Shares have surged over 300% since November 2024, as the market recognized this opportunity. 

But the real question is whether ABAT can execute its expansion plans and reach profitability as lithium demand continues climbing.

For investors looking for exposure to the lithium shortage without betting on traditional mining, ABAT stock offers a unique angle: turning America's growing pile of dead EV batteries into the raw materials for new ones.

Looking for other lithium and critical mineral opportunities? Find out what our analysts are watching by subscribing to Market Briefs Pro.