From Lab to Road: Lithium Pact Powers US EV Ambitions

A $1M pact between ABTC and Argonne Lab bets on a cleaner, faster path to refined lithium for EV batteries

31 Aug 2025

A new experiment in lithium refining is under way in America. The American Battery Technology Company (ABTC) and the Department of Energy's Argonne National Laboratory have launched a $1m partnership to develop a faster, cleaner and cheaper way of producing lithium hydroxide, a key ingredient in batteries for electric vehicles (EVs).

The need is obvious. Demand for lithium hydroxide is rising as carmakers expand EV production. Yet most refining still happens in Asia, leaving America dependent on foreign suppliers despite having plenty of raw resources. The project aims to change this by reducing energy use and chemical inputs in the refining process. If it works, costs and emissions would fall while automakers gain a domestic source of supply.

"This collaboration validates our technical progress and gives us access to world-class national lab resources," says Ryan Melsert, ABTC's boss. Argonne researchers stress that public research combined with private capital is the best way to push new methods into the market.

Washington is adding urgency. The Inflation Reduction Act links EV subsidies to materials refined at home, making domestic lithium a political as well as industrial priority. Analysts reckon that credible breakthroughs could unlock billions in private investment and put America in contention as a refining hub, not just a miner.

The hurdles are large. Many pilot projects stumble when scaling up. Building new plants is costly and time-consuming. Even if ABTC and Argonne succeed, commercial production may take years. But the combination of policy pressure, rising demand and industrial ambition makes the timing unusually favourable.

This venture is part of a broader push for control of strategic resources. America wants not only to dig lithium out of the ground but also to master its transformation. Should the experiment bear fruit, it could shift the balance of the battery business and help America secure its place in the EV supply chain.