Ascend Elements raises $542M to accelerate production of LIB materials

Westborough, Massachusetts-based lithium-ion battery (LIB) recycler Ascend Elements has announced that it has raised $542 million in new equity investments, including $460 million in Series D investments and $82 million of additional investments from earlier this year.

Ascend’s Series D round was led by Decarbonization Partners, Singapore-based investment firm Temasek and Qatar Investment Authority (QIA). Other investors include Tenaska; Alliance Resource Partners; PULSE-CMA CGM Energy Fund; BHP Ventures; Fifth Wall; Hitachi Ventures; Mirae Asset; At One Ventures; Agave Partners; and Alumni Ventures, among others.

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Ascend claims the $542 million equity financing is one of the largest cleantech equity private placements in the U.S. this year to date, and one of the top 10 equity private placements in the U.S. this year.

“I’d like to thank our new and existing partners for helping us deliver on our vision of producing sustainable, engineered battery materials at a commercial scale,” Ascend CEO Mike O’Kronley says. “Our sustainable lithium-ion battery materials will power EV batteries and accelerate the global transition to zero carbon emissions. Together, we are investing in North America’s critical EV battery infrastructure and bringing good manufacturing jobs back to the United States.”

Dr. Meghan Sharp, global head of Decarbonization Partners, adds, “We are excited to invest in Ascend Elements, which has established itself as a leader in the fast-growing sustainable battery materials space that is vital to accelerating the electrification of transport. We are pleased to collaborate on this investment alongside our JV partner, Temasek, and look forward to supporting Ascend Elements’ continued expansion and technological innovation.”

Ascend says the funding will advance the construction of its Apex 1 facility in Hopkinsville, Kentucky, which will manufacture sustainable cathode precursor (pCAM) and cathode active material (CAM), both engineered materials made to precise microstructure specifications for use in electric vehicle (EV) batteries.

The company adds that most of the world’s pCAM and CAM are made in China from primary metals, and Ascend aims to commercialize an efficient method to make sustainable pCAM and CAM from black mass—the traditional output of LIB recycling facilities. The company notes its patented Hydro-to-Cathode direct precursor synthesis process eliminates several intermediary steps in the traditional cathode manufacturing process and provides significant economic and carbon-reduction benefits. Ascend points to several peer-reviewed studies showing its recycled battery materials perform as well as similar materials made from virgin sources while reducing carbon emissions by up to 93 percent.

“We are pleased to be investing in Ascend Elements, a proven leader in the manufacturing of engineered battery materials, and a key partner in QIA’s efforts to fund the global energy transition,” says Mohammed Al-Sowaidi, chief investment officer, Americas at QIA. “This investment is aligned with QIA’s strategy of supporting innovative companies shaping the future of the global economy and will be a major investment in our North American portfolio.”

Over the last 12 months, Ascend says it has achieved several significant milestones, including signing its first commercial scale pCAM contract, starting construction of its Apex 1 facility and securing two U.S. Department of Energy (DOE) grants. In June, the company signed a $1 billion contract to supply sustainable pCAM starting in the fourth quarter of 2024 with options to expand the multiyear contract to a larger quantity with a value of up to $5 billion. In October 2022, the company began construction of its Apex 1 facility on a 140-acre site in southwest Kentucky. When complete, the 1 million-square-foot facility will produce enough pCAM for 750,000 EVs per year, the company says.

Ascend also was awarded two DOE grants totaling $480 million, part of the Bipartisan Infrastructure Law in October 2022.

“I’m extremely proud of our team and the amazing progress we’ve been able to achieve over the last year,” O’Kronley says. “We look forward to building upon our strong momentum with support from our new and existing partners to develop the sustainable, domestic EV supply chain needed for the global energy transition.”

Goldman Sachs & Co. LLC acted as sole placement agent on the Series D transaction.