A separate $316M U.S. DOE grant to Ascend Elements for pCAM infrastructure remains active to help fund construction of the Apex 1 project in Hopkinsville, KY.
HOPKINSVILLE, KY., (February 27, 2025) — Due to changing market conditions, Ascend Elements and the U.S. Department of Energy (DOE) have mutually agreed to cancel a $164 million grant intended to fund cathode active material (CAM) manufacturing infrastructure at the company’s Apex 1 project in Hopkinsville, Kentucky. A separate U.S. DOE grant of $316M for construction of cathode precursor (pCAM) infrastructure remains active. Due to changing market conditions, demand for domestic pCAM has exceeded demand for CAM and Ascend Elements now plans to produce only pCAM and Lithium Carbonate (Li2CO3) at the Kentucky facility.
“We are grateful to the U.S. DOE for selecting Ascend Elements to receive this funding, but current market conditions do not support advancement of the CAM project at Apex 1,” said Roger Lin, VP of Government Affairs at Ascend Elements. “We are 100% committed to completing construction of the Apex 1 campus in Hopkinsville, Kentucky, but the facility will only produce pCAM and Lithium Carbonate, a critical mineral. We’re just not seeing significant market demand for CAM right now, but we have buyers lined up to purchase sustainable, domestically produced pCAM and Lithium Carbonate.”
Ascend Elements was originally selected for a total of $480M in funding from two U.S DOE grants in October 2022 as part of the Infrastructure Investment and Jobs Act – a $164M grant for CAM manufacturing infrastructure and a $316M grant for pCAM manufacturing infrastructure.
“By voluntarily returning the CAM grant, we are freeing up $164M of federal funding for the current administration to reallocate as it deems most appropriate,” Lin said.
At Apex 1, the company is prioritizing pCAM manufacturing to help fill the 400-kiloton annual shortfall of pCAM that analysts expect in North America by 2030. Most of the world’s pCAM is currently made in China and the Apex 1 facility will be North America’s first commercial-scale manufacturer of pCAM when operational in Q3 2026.
According to Lin, the Apex 1 facility will be an important part of America’s domestic critical materials infrastructure. “This project squarely aligns with the administration’s stated goal of increasing domestic production of critical materials. We are committed to creating good jobs in Kentucky, providing a domestic supply of lithium-ion battery materials and enhancing U.S. energy independence.”
Founded in 2015 and based in Massachusetts, Ascend Elements is a leading provider of domestic, critical minerals and engineered battery materials for the lithium-ion battery industry. The company produces sustainable Li2CO3 and NMC pCAM made from recycled battery materials. Ascend Elements’ patented Hydro-to-Cathode® direct precursor synthesis technology produces new pCAM material from spent lithium-ion cells more efficiently than traditional methods, resulting in improved economics and lowered carbon emissions.
MEDIA CONTACT:
Thomas Frey, APR | Ascend Elements | [email protected] | +1.734.658.0143