A Nevada mining company will lose out on a $57 million federal grant to build a manufacturing plant for battery-grade lithium hydroxide near Tonopah.

In a Monday statement, American Battery Technology Co. CEO Ryan Melsert said he’s proud of the progress on the project and will keep working with the Trump administration to see it through.

If granted federal permits, the Tonopah Flats Lithium Project about 5 miles west of Tonopah is expected to further solidify Nevada as the nation’s leader in lithium production. Currently, only one operational lithium mine exists in the country, in Esmeralda County: Albemarle’s Silver Peak mine.

“All evidence demonstrates that this critical minerals project aligns with the Administration’s mission and key priorities, especially as this project was recently selected by the Administration to be a Priority Project with streamlined federal permitting,” Melsert said, referencing the feds’ June 2025 selection of the project for a program to fast-track permitting.

The Energy Department did not respond to a request for comment on Monday.

Lithium an outsized influence in Nevada

The Trump administration, like its predecessor, has displayed support for lithium production.

Many politicians have found establishing a domestic supply of “critical minerals,” or those designated by the feds to have value to the economy and national security, a worthy mission. China leads the market for lithium and most of the critical minerals.

U.S. Rep. Mark Amodei, R-Nev., has been a vocal supporter of the lithium mining industry in his Northern Nevada district.

He told CNN last week that he has had poor communication with the Trump administration, and that he was the person “with the least amount of information on that cancellation decision.” On Monday, his office declined to comment further than what he told the network.

It seems high on the administration’s priority list, with this news coming less than a month after officials bought a 5 percent stake each in a different Nevada lithium mine and the company building it.

American Battery Technology Co. immediately appealed the termination, company spokesperson Tiffiany Moehring said. Roughly $52 million was unused at the time of rescission, according to a Thursday filing with the Securities and Exchange Commission.

“We’re energized by the potential of this project to strengthen the U.S. critical minerals supply chain,” Melsert said.

Contact Alan Halaly at ahalaly@reviewjournal.com. Follow @AlanHalaly on X.