October 21, 2025

Ascend Elements Faces Setbacks in Kentucky Battery Facility Plans

News Summary

Ascend Elements, a battery recycling company, is experiencing significant challenges in building a Kentucky manufacturing facility for lithium-ion battery components. Following the cancellation of a crucial $316 million grant from the U.S. Department of Energy, Ascend is seeking alternative funding to continue its operations. While they plan to resume construction by 2026, the broader suspension of federal funds affecting clean energy projects raises concerns about the future of domestic battery production amidst an evolving market landscape.

Lexington, Kentucky — Ascend Elements, a Massachusetts-based battery recycling company, is facing significant setbacks in its plans to build a manufacturing facility in Kentucky aimed at producing critical minerals for lithium-ion batteries essential for electric vehicles (EVs). This development comes after the U.S. Department of Energy (DOE) canceled a pivotal $316 million grant that had been awarded to the company. Out of this amount, approximately $110 million had yet to be disbursed.

The DOE’s grant cancellation coincided with a broader effort to cut federal funding for various projects, particularly those located in blue states and for climate change initiatives, amidst an ongoing government shutdown. This move has led to the cancellation of over $700 million in grants that primarily target battery projects nationwide. The DOE announced that these cancellations took place during the second week of October, aligning with the commencement of the shutdown.

In addition to the grant loss impacting Ascend Elements, $7.6 billion in federal funds have been scrapped for more than 200 projects across the country that largely focus on clean energy development. The DOE has justified the cancellations by stating that the projects either did not achieve critical milestones or failed to align with the nation’s energy needs, labeling them as economically unviable.

Despite the cancellations, Ascend Elements has affirmed its commitment to continue its operations in Kentucky. The company maintains that its business model is not solely reliant on government grants and seeks to resume construction at the Apex 1 facility by 2026. The facility is projected to be capable of equipping up to 250,000 electric vehicles each year and may require an overall investment of around $1 billion, potentially creating 400 jobs.

The company’s intentions to move forward include seeking alternative funding methods, such as equity and bond offerings to recoup the lost federal support. Earlier in the year, Ascend Elements had already opted to cancel another DOE grant of $164 million, citing “changing market conditions.” The decision indicated a shift in demand from precursor cathode active material (pCAM) towards cathode active materials (CAM).

While construction had initially been paused until late 2024 due to delays from major customers, it is now expected to tentatively recommence in three years. Once operational, the Apex 1 facility is anticipated to become North America’s first commercial-scale producer of pCAM, integral to the production of lithium-ion batteries.

The regional implications of these developments are significant as Ascend Elements is currently the only large-scale domestic producer of pCAM. The facility’s goals are aligned with addressing expected shortfalls in battery materials in North America projected for 2030, reinforcing its role in enhancing domestic battery supply chains for electric vehicles.

As uncertainty looms following the DOE’s funding cuts, scientists, researchers, and business leaders across the country are adjusting their future plans and budgets in response to shifting financial landscapes. The ongoing developments at Ascend Elements highlight the complex interplay of government funding, market demand, and the capabilities of domestic battery production as the country continues to navigate the transition toward more sustainable energy solutions.

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Author: STAFF HERE BOSTON WRITER

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