Ascend Elements and the U.S. Department of Energy mutually agreed last week to cancel a $164 million grant earmarked for cathode active material (CAM) production at the company’s Apex 1 facility in Hopkinsville.
The company said the decision stems from shifting market demands, with a surge in demand for cathode precursor (pCAM) outpacing that of CAM.
While the CAM grant is relinquished, a separate $316 million Department of Energy grant for pCAM infrastructure remains active. Ascend Elements will now focus on producing pCAM and lithium carbonate at the Kentucky plant, set to be North America’s first commercial-scale pCAM manufacturer when it opens late next year.
The company, originally awarded $480 million in total Department of Energy funding in 2022, is prioritizing pCAM production to address the anticipated 400-kiloton annual shortfall in North America by 2030.
