AMERICAN BATTERY TECHNOLOGY CO shares slumped 18% after saying on Wednesday the U.S. Department of Energy has terminated its grant for the setting up of a facility for the manufacturing of battery cathode grade lithium hydroxide.

Under the grant, DOE's Manufacturing Energy Supply Chain office would contribute $57.7 million, while the company would put in an equal amount towards the facility.

Reimbursable DOE funds of about $52 million remained as of October 9, the company said.

The termination followed a May notice that all MESC grants would undergo audits under a DOE memorandum.

The company said it has appealed the termination and plans to pursue dispute resolution remedies.

Despite the setback, the company said it has raised over $52 million from public markets this year and will continue the project without changes to its timeline or scope.

In April, the company received a letter of interest from U.S. Export-Import bank for $900 million in financing to support construction of its Nevada-based lithium mine and refinery.