Ascend Elements has agreed to pay EUR 6.4 million in response to US government allegations over its Hopkinsville, Kentucky battery project.
The settlement comes after the Massachusetts-based battery materials company entered Chapter 11 bankruptcy protection in April.
Meanwhile, the partially built Apex 1 facility has a new owner with Turner-Kokosing Joint Venture acquiring the site through the bankruptcy process.
Grand ambitions
The project was originally announced in 2022 as a EUR 850 million investment. The planned 6.1 million-square-foot facility was designed to treat hundreds of thousands of electric vehicles (EVs) per year. Ascend Elements intended to produce ‘high quality’ cathode precursor and cathode active materials from the lithium-ion batteries.
It was also expected to become the company’s largest US operation, creating up to 400 new jobs. Although Ascend Elements attracted substantial investment to scale its business, the company ultimately faced financial pressure as the US EV and battery markets changed.
Inflated reimbursement claims
Under the settlement, Ascend will pay EUR 6.4 million to resolve civil allegations from the Department of Justice that Ascend submitted inflated reimbursement claims linked to the Department of Energy-funded project.
Between September 2023 and February 2025, the Department of Energy paid more than EUR 4.5 million linked to cover labour, tools and equipment.
Ascend Elements was credited with voluntarily disclosed the issues and cooperating with the government investigation.
Battery recycling plant remains unfinished
Ascend Element’s financial difficulties have disrupted construction of Apex 1 with the facility around 65% complete, according to Turner-Kokosing. Construction remains paused following changing market conditions and disputes over unpaid construction work.
The US Department of Energy has also cancelled the project’s remaining funding but Turner-Kokosing says it intends to complete the facility.
The construction joint venture is also seeking a potential manufacturer for the site, creating uncertainty over the facility’s eventual operator and production plans.
Don't hesitate to contact us to share your input and ideas. Subscribe to the magazine or (free) newsletter.
