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The stock had doubled in value over this seven-day winning streak, gaining as much as 132%.
After the fall in regular trading, the stock plummeted as much as 41% in afterhours trading as well, before paring some of those losses to 24%.
The stock fell after a notification to the exchanges which stated that the US Department of Energy has cancelled a grant which was previously awarded to them.
The grant in question, awarded in 2023, would have helped the company finance the design and construction of a plant which would manufacture battery cathode-grade lithium hydroxide.
American Battery joins the list of alternative energy companies that have been on the radar of US President Donald Trump due to his views on climate change and green energy.
The company, based out of Nevada, said that they received the notification of the grant cancellation last week, by which, the stock had already gained for three out of this seven-day rally.
As of date, funds to the tune of $52 million were yet to be reimbursed to the company in the form of grants. The filing was shared after market closing, but the stock had already witnessed the profit booking bout after the recent rally.
On a year-to-date basis, the stock has gained over 300% and the recent fall has now trimmed its 12-month returns down to just over 800%.
(With Inputs From Agencies.)
