Ascend Elements, a battery recycling firm that had raised nearly $900 million from investors, has filed for Chapter 11 bankruptcy. The move comes amid a softening market for electric vehicles and after the company failed to secure a crucial government grant in Kentucky.
The U.S. market for EVs is experiencing a downturn, with sales peaking before tax credits expired last September. Despite initial optimism, major automakers are scaling back their EV production plans, with Volkswagen cancelling ID.4 production at its Tennessee factory.
Ascend Elements has developed a process to extract valuable minerals from scrap batteries but faced significant delays and legal issues in Kentucky. Its large recycling facility there was beset by lawsuits and construction woes, leading to higher costs that it could not overcome.
The failure of Ascend Elements is another chapter in the industry’s tumultuous journey, showing how battery-related startups face immense financial challenges and intense competition. However, Chinese manufacturers continue to dominate with state support, driving down costs and setting a tough benchmark for others.
