Battery recycler with plant east of Atlanta files for bankruptcy
Battery recycler Ascend Elements, which has a major plant 35 miles east of Atlanta, has filed for bankruptcy, becoming the latest firm involved in the electric vehicle and clean energy supply chain to show signs of struggle under President Donald Trump’s administration.
The company filed for Chapter 11 protection Thursday in the Southern District of Texas’ bankruptcy court. In a declaration in support of the bankruptcy, Ascend’s CEO Linh Austin revealed the company has $103.5 million in long-term debt.
“The lack of early, sustained revenue generation — exacerbated by construction delays, cost overruns, and production constraints — has created a near-term liquidity shortfall that limited available alternatives,” Austin wrote to the court.
Chapter 11 bankruptcies are often known as “reorganization” bankruptcies. They typically allow companies to continue operations while reshuffling to address debt, with the input of creditors and the court’s approval.
One of the Massachusetts-based company’s two production facilities is located in Covington and opened in 2022.
The 150,000 square-foot plant salvages critical minerals and other materials from spent lithium-ion EV batteries for reuse in new battery cells. Last year, the Covington plant became the first facility in the country to produce pure lithium carbonate from recycled material. Lithium carbonate is a critical component in EV batteries.
A spokesperson for Ascend did not immediately respond to questions about potential impacts to its Georgia employees.
Ascend also has a joint venture recycling facility in Poland and conducts research and development at its headquarters in Westborough, Mass.
Companies like Ascend have tried to produce a domestic supply chain for battery components to break the industry’s reliance on China.
In a 37-page declaration submitted to the bankruptcy court, Austin said he believes the market for the company’s domestically produced recycled battery materials is still strong.
Still, he said a range of factors have complicated the company’s plans to scale up, creating a near-term debt crunch. Austin cited disputes with a construction firm that’s building its new recycling facility in Kentucky, as well as volatility in the price of critical minerals, which he attributed to China’s overwhelming market dominance.
“Due to these constraints … the company determined that Chapter 11 offers the best available option to preserve and maximize value for stakeholders under current market and operational conditions,” Austin wrote to the court.
Problems with the Covington facility have also contributed to the company’s financial situation.
In his declaration to the court, Austin said the plant has not been able to ramp up production as fast as expected because it needs upgrades to its “utility connection.” He said Ascend has identified a solution, but that “implementing it will require time and capital.”
Ascend is just the latest firm tied to the clean energy and EV ecosystems to face headwinds in the Trump era.
Customer demand for EVs has not grown as rapidly as many companies anticipated. At the same time, Trump has executed an abrupt U-turn from President Joe Biden’s administration, which offered unprecedented federal support to help wean the country off fossil fuels.
Trump yanked back federal tax breaks for EVs, rooftop solar and more with the passage of his signature piece of legislation, the so-called “One, Big, Beautiful Bill Act.” The administration has also tried to revoke dozens of grants aimed at building domestic clean energy supply chains, including one for Ascend.
According to the company’s bankruptcy filings, Ascend was awarded a $311 million grant in 2022 to support construction of its new recycling plant in Hopkinsville, Ky.
But last year, Trump’s Department of Energy canceled the funding, as it moved to claw back millions in grant dollars that were provided under the Biden administration. Ascend said it has only received $207 million of the grant.
Other companies with large Georgia-based workforces have also struggled with the shifting market dynamics.
Last month, Korean electric vehicle battery manufacturer SK Battery America announced plans to lay off nearly 1,000 workers at its factory in Commerce, a short drive from Covington.
Facing diminished demand for EVs, SK Battery said it would pivot to supply battery energy storage systems, the hulking battery configurations often used to store power generated by solar or wind installations.
About the Author
Drew Kann is a reporter at The Atlanta Journal-Constitution covering climate change and environmental issues. His passion is for stories that capture how humans are responding to a changing environment. He is a proud graduate of the University of Georgia and Northwestern University, and prior to joining the AJC, he held various roles at CNN.
