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Battery Negative to Case?


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I am building up a ABM-1 enclosure and they supply a try for a 20700 that joins the battery negative to the case metal/atomizer.

See: http://analogboxmods.ca/image/cache/catalog/parts/battery_holders/20700/ABM1-1x20700-2-800x700.jpg

So, I will still run a negative from the battery to the chip for charging, but two questions:

Will this work?  I have never run battery negative to the case before

Do I need to also wire it to the chip output end ground?  I think not since the case is metal and the ground path would then be the screws.

Thanks for your input.  Not clear on why the battery negative is run to the case.

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