American Battery Metals Corp. (OTC: ABML) is a startup lithium and natural resource company focused on extracting, processing, and recycling materials for the battery industry. Lithium is used in storage cells for electric vehicles, cell phones, computers, renewable energy systems, and a range of devices. Analysts believe that the demand for lithium will triple by 2025.
The company is yet to turn a profit, and its balance sheet won’t appeal to mainstream investors. While well-funded, it lacks free cash flow or any significant revenue. The appeal here is all in the potential.
American Battery Metals is developing new extraction processes to increase sustainability and yield in its lithium brine operations. It is also developing a lithium-ion battery recycling facility to meet environmental challenges while also making use of materials no longer in the supply chain. The company currently operates a commercial pilot plant with the capacity to process 20,000 metric tons of recycled battery material per year.
The company generated $2.6 million in common stock financing in June. This exceeded the company’s target of $2 million. Its stock will help to fund expansion as the company establishes its lithium extraction, production, and recycling operations.
This stock is unproven and it carries a high level of risk. However, the bargain price and potential of the company to serve a growing lithium market make it one to consider in 2020.
- 1 Year Price Growth: -38.84%
- YTD Price Growth: 69%
- 3 Month Price Growth: 37%
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