8-K: ABTC Secures Major Lithium-Ion Battery Recycling Deal

American Battery Technology Company has entered into an agreement with Veolia to recycle over 3,100 metric tons of lithium-ion batteries from the Moss Landing Energy Storage System.

Summary

• American Battery Technology Company (ABTC) entered into the Moss Landing Amendment 2 with Veolia ES Technical Solutions, L.L.C. on November 5, 2025, effective October 9, 2025.
• The agreement details terms for ABTC to provide recycling services for lithium-ion battery products from the Moss Landing Battery Energy Storage System in Monterey County, California.
• Veolia will deliver a minimum of 35,156 accessible modules, totaling 6,892,340 pounds (3,126 metric tons) of LG Lithium-Ion battery products with NMC chemistries.
• The recycling process will be conducted under the oversight of the U.S. Environmental Protection Agency (EPA).
• ABTC is required to provide a certificate of destruction for each shipment of materials processed within 24 hours of destruction.
• The original Recycling/Reclamation Services Agreement, dated March 13, 2024, covers general recycling, classification, labeling, packaging, and transportation services.
• ABTC warrants its capability, compliance with all applicable laws and regulations, and adherence to R2 Standards for electronics recyclers, including specific methods for managing Focus Materials (FM) like batteries (for metals recovery) and circuit boards (for metals recovery).

Sentiment

Score: 7

Explanation: The agreement secures a substantial volume of material for recycling, demonstrating ABTC's operational capacity and market relevance. While specific financial terms are not disclosed, the scale and regulatory oversight are positive indicators for the company's strategic positioning in the growing battery recycling sector.

Positives

• Secures a significant volume of lithium-ion battery material (over 3,100 MT) for recycling, indicating strong demand for ABTC's services and operational capacity.
• The project is under the oversight of the U.S. Environmental Protection Agency (EPA), lending credibility and regulatory alignment to ABTC's operations.
• ABTC's commitment to R2 Standards for electronics recyclers demonstrates adherence to high environmental, health, and safety practices, enhancing its reputation.
• The agreement emphasizes 'TIMELY DELIVERY IS OF THE ESSENCE' for materials, suggesting a consistent and reliable supply stream for ABTC's recycling facility.

Negatives

• Specific pricing and payment terms (referenced as Schedule A-3) are not disclosed in the filing, making it difficult to fully assess the immediate financial impact of the agreement.
• Veolia retains the right to reject non-conforming material, which could lead to potential logistical challenges or additional costs for ABTC if such situations arise.
• The agreement includes a non-solicitation clause for certain Veolia customers, which could limit ABTC's direct market expansion opportunities in specific hazardous waste management and transportation services.

Risks

• Risk of receiving non-conforming recyclable material, which could lead to increased costs for return, disposition, or processing adjustments.
• Potential for delays in material delivery from Veolia, which could impact ABTC's operational scheduling and throughput.
• Compliance risks associated with handling hazardous materials and adhering to all applicable federal, state, and local laws and regulations, including the R2 Standards.
• Operational risks related to maintaining all required permits, licenses, and insurance coverages throughout the term of the agreement.
• Security risks during the transportation of materials, requiring strict adherence to specific security plans and immediate reporting protocols for any incidents.

Future Outlook

The agreement is set to remain in effect until the project's completion, indicating a sustained period of recycling services for the Moss Landing materials. ABTC is committed to providing certificates of destruction within 24 hours of processing, suggesting efficient and transparent operations. Veolia is expected to ensure timely delivery of materials, which should support a consistent workflow for ABTC.

Management Comments

• ABTC will provide recycling services to Veolia in connection with recovery of materials from the Moss Landing Battery Energy Storage System.
• Veolia shall deliver to, and the Company shall acquire, lithium-ion battery products originating from the Site under the oversight of the U.S. Environmental Protection Agency.

Industry Context

This agreement highlights the increasing demand for robust lithium-ion battery recycling infrastructure as large-scale battery energy storage systems reach their end-of-life or require decommissioning. It strategically positions ABTC as a key player in the circular economy for critical battery materials, addressing both environmental concerns and the need for secure domestic supply chains. The involvement of the EPA underscores the significant regulatory and environmental importance of such recycling operations within the industry.

Comparison to Industry Standards

• ABTC's commitment to the R2 Standards (Sustainable Electronics Reuse & Recycling Standard) demonstrates adherence to leading industry best practices for environmental, health, and safety management in electronics recycling, aligning with the standards upheld by major competitors like Redwood Materials and Li-Cycle.
• The scale of 3,126 metric tons of lithium-ion batteries from a single site (Moss Landing) represents a substantial project, comparable to large-scale decommissioning efforts seen in other industrial battery applications or early electric vehicle battery fleets.
• The requirement for ABTC to provide a certificate of destruction within 24 hours of processing sets a high standard for operational efficiency and transparency, which is a critical expectation for clients like Veolia managing large volumes of industrial waste.

Stakeholder Impact

• Shareholders: Potential for increased revenue and market share in the battery recycling sector, enhancing long-term value and strategic positioning.
• Employees: Potential for stable workload, job security, and growth opportunities within ABTC's recycling operations.
• Customers (Veolia): Ensures responsible and compliant recycling of significant battery waste, helping Veolia meet its environmental obligations and project requirements.
• Environment: Contributes significantly to the circular economy by recovering critical materials from end-of-life batteries, reducing waste, and lessening reliance on virgin resources.

Next Steps

• Veolia is to prepare, package, and timely deliver lithium-ion battery materials to ABTC's designated facilities.
• ABTC will provide recycling services for the delivered materials.
• ABTC is to issue a certificate of destruction for each shipment within 24 hours of processing.
• ABTC is required to update the list of downstream vendors on Appendix A annually and notify Veolia of any changes.

Key Dates

Recommendation

This agreement represents a significant strategic win for American Battery Technology Company, securing a substantial volume of lithium-ion battery material for recycling from a major energy storage project. The scale of 3,126 metric tons and the involvement of a reputable partner like Veolia, under EPA oversight, validate ABTC's technology and operational capabilities. While specific financial terms are not disclosed, the commitment to R2 Standards and the long-term nature of the project (until completion) suggest a stable revenue stream and strong positioning in the rapidly expanding battery recycling market. This strategic partnership enhances ABTC's competitive advantage and addresses a critical need in the circular economy for battery materials, making it an attractive investment for long-term growth.

Keywords

Lithium-ion battery recycling, Battery energy storage, Critical mineral recovery, Circular economy, Environmental Protection Agency, R2 Standards, Waste management, NMC batteries, Moss Landing, Veolia