Ascend Elements
It turned spent batteries into new cathode material until grants, demand and prices all moved against it
- Founded
- 2015
- Closed
- 2026
- Lifespan
- 11 years
- Total funding
- $900 million
- Peak valuation
- $1.5 billion
- Country
- United States
- City
- Westborough
- Sector
- Energy and climate
- Investors
- Decarbonization Partners, Temasek, Qatar Investment Authority, Fifth Wall
- At its peak
- A USD 542 million funding round in September 2023 and a valuation of about USD 1.5 billion
- Cause of closure
- Ran out of cash
What did it do?
Ascend Elements was a US company that recycled used lithium-ion batteries and made cathode materials for new ones. It ran pilot facilities in Massachusetts and Michigan. Its main goal was the Apex 1 plant in Hopkinsville, Kentucky. Honda and SK Battery America were among its customers.
Why did it shut down?
The company raised USD 542 million in September 2023, but its model leaned heavily on one factory and on federal support. The Department of Energy grant for Apex 1 was USD 316 million, and in October 2025 the remaining balance of about USD 110 million was cancelled. Electric vehicle sales did not recover after the tax credit ended in September 2025, while Chinese producers pushed prices down. The plant suffered delays and contractor disputes, with contractors' liens passing USD 145 million. On 9 April 2026 the company filed for Chapter 11 in the Southern District of Texas. The court confirmed a liquidation plan on 17 August 2026, with general unsecured creditors expected to recover between 0 and 0.4 per cent.
The story
Ascend Elements was founded in 2015 on a simple promise: spent lithium-ion batteries would become cathode material for new ones rather than waste. In September 2023 it raised USD 542 million, including a USD 460 million Series D. Backers included Decarbonization Partners, the BlackRock and Temasek joint venture, and the Qatar Investment Authority. Its value reached about USD 1.5 billion.
Most of the money went to the Apex 1 plant in Kentucky. The site of roughly a million square feet was meant to be North America's first sustainable cathode materials hub, and the Department of Energy backed it with a USD 316 million grant.
Then three things broke at once. Delays and lawsuits began on site. The electric vehicle tax credit ended in September 2025 and sales did not recover. In October 2025 the unpaid part of the grant was cancelled.
On 9 April 2026 chief executive Linh Austin said the financial challenges had become insurmountable, and the company filed for Chapter 11. The Kentucky site went to its main contractor, and the Georgia plant to R3 Lithium for USD 3 million. The court confirmed a liquidation plan on 17 August 2026. Nothing was left of the nearly USD 900 million from investors.
Lessons for founders
- If your plan depends on a state grant arriving on time, budget for the case where it is withdrawn; when USD 316 million of support was cut back in October 2025, this company had no reserve to fall back on.
- Tie all your capital to one giant site and a construction delay stops being an operational problem and becomes a solvency problem. Design capacity so it can open in stages.
- If rivals cut prices with state-backed production, a made-at-home pitch will not carry the customer. Secure in contract who pays the price gap before you build the plant.
Sources
- Battery recycler Ascend Elements files for bankruptcy (TechCrunch via Yahoo Finance, 2026-04-10)
- Ascend Elements: $1.5 Billion Battery Recycler Pursues 363 Sale After DOE Grant Cancellation (Elevenflo, 2026-04)
- Ascend Elements - Chapter 11 Plan Terms (Bondoro, 2026-08)
- Battery recycling heats up with Ascend Elements' $542M Series D (TechCrunch via Yahoo Finance, 2023-09-13)
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