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The ABC protein ABCE1, also called HP68 or RNase L inhibitor (RLI), is one of the most conserved proteins in evolution. It is universally expressed in eukaryotes and archaea, where ABCE1 is essential for life. ABCE1 plays a crucial role in translation initiation and ribosome biogenesis, however, the molecular mechanism of ABCE1 remains unclear. In addition to two ABC ATPase domains, ABCE1 contains a unique N-terminal region with eight conserved cysteines predicted to coordinate iron-sulfur (Fe-S) clusters. To analyze the function of ABCE1, the hyperthermophilic crenarchaeote Sulfolobus solfataricus was chosen as a model system. S. solfataricus ABCE1 was overexpressed homologously in S. solfataricus and heterologously in E. coli. Noteworthy, for tagged-protein production in S. solfataricus a novel expression system based on a virus shuttle vector was established. This is the first example for a successful overexpression and purification of isolated full-length ABCE1. For the first time it was shown that ABCE1 indeed bears biochemical properties of an ABC protein even though it has unique features. Remarkably, the nucleotide binding domains (NBDs) of ABCE1 bound ATP and AMP, but were functionally non-equivalent in ATP hydrolysis. Mutations of conserved residues in the second NBD led to a hyperactive ATPase, which implies an intramolecular mechanism of dimer formation. Truncation of the Fe-S cluster domains did not influence ATPase activity. The Fe-S clusters of ABCE1 were analyzed by biophysical and biochemical methods. As presented in this study, ABCE1 harbors two essential diamagnetic [4Fe-4S]2+ clusters, one ferredoxin-like cluster formed by cysteines at position 4/5/6/7 and one unique ABCE1 cluster formed by cysteines at position 1/2/3/8. ABCE1 was found to be associated with RNA after purification from S. solfataricus and bound ribosomal RNA in vitro. In addition, ABCE1 showed homo-oligomerization and appeared to form a hexameric complex of ~440 kDa, which was RNase sensitive. Archaeal ABCE1 associated with ribosomes, however, the unique Fe-S clusters of ABCE1 were not required for this interaction. Although archaeal ABCE1 assembled with ribosomes and ribosomal RNA, ABCE1 proved not to be essential for translation in S. solfataricus and did not interact with archaeal initiation factors. Nevertheless, the ABCE1 gene is one of the few genes conserved between archaea and eukaryotes and fulfills a universal task, which needs further characterization.