Mission Aligned #11: Ascend Elements
Transforming recycled batteries into premium materials that outperform virgin resources
The EV revolution has a hidden problem: manufacturing a single electric vehicle battery requires processing approximately 500,000 pounds of raw materials, with China controlling most of the world's processing capacity for key battery inputs. Ascend Elements is addressing this challenge with a breakthrough approach that doesn't just recycle spent batteries – it transforms them into engineered materials that outperform those made from freshly mined resources, while building domestic supply chain resilience in a rapidly evolving market.
The Opportunity
Three factors make Ascend Elements particularly compelling as an investment:
Superior Technology With Proven Results
Their patented Hydro-to-Cathode™ process recovers 98% of critical battery elements and reengineers them at the molecular level. The results, validated in peer-reviewed research, are remarkable: batteries with up to 50% longer cycle life and 88% higher power capability than those made with traditional materials.
Unlike conventional recycling that merely recovers raw materials, Ascend's process creates custom-engineered cathode precursor (pCAM) and cathode active materials (CAM) that form the heart of new batteries. Their complementary Hydro-to-Anode technology recovers 99.9% pure graphite, addressing another critical supply chain gap.
Massive Market With Favorable Economics
The lithium-ion battery recycling market is projected to reach $23.21 billion by 2032, but Ascend's real opportunity extends beyond recycling to the much larger battery materials market.
Their approach creates compelling economics: materials that outperform virgin resources while costing up to 50% less to produce. As they scale, their process becomes increasingly cost-effective, creating a powerful competitive advantage.
Strong Commercial Traction and Strategic Partnerships
Ascend Elements has secured major commercial agreements that validate their approach:
A $1 billion supply contract with a major U.S. battery manufacturer, expandable to $5 billion
A strategic partnership with Honda for recycled battery materials
Collaboration with EcoPro Group to integrate recycled materials into products for North American EV manufacturers
Ready to Scale
Ascend Elements is rapidly scaling production with facilities strategically located to serve key markets:
Their operational Covington, Georgia facility processes materials equivalent to 70,000 EV battery packs annually and recently added lithium carbonate production
Their Hopkinsville, Kentucky facility (Apex 1) is under construction with a revised focus: the company has pivoted from producing cathode active materials (CAM) to concentrating on cathode precursors (pCAM) and expanding lithium carbonate production
This strategic shift positions them as the only large-scale manufacturer of pCAM in America, turning potential competitors into customers
International operations in Poland position them within Europe's battery ecosystem
Navigating Policy and Market Dynamics
Ascend Elements operates within a complex policy landscape that presents both opportunities and challenges:
The Inflation Reduction Act provides production tax credits for domestic battery materials manufacturing
Federal support includes significant grants, though Ascend recently agreed to cancel a $164 million DOE grant for CAM production while retaining a $316 million grant for pCAM
Chinese dominance in battery materials and fluctuating EV demand creates market uncertainty
As Ascend spokesperson Thomas Frey noted, "With tariffs at play and things like that, that makes us pretty appealing" as a domestic supplier
Why This Matters
Ascend Elements represents a rare alignment of environmental impact and economic advantage. By proving that circular systems can outperform linear ones, they're creating value through sustainability rather than despite it.
As an investor, I see Ascend Elements as a company that's not just idealistic about circular systems but pragmatic about creating real-world solutions in a complex marketplace. Their commitment to "creating a domestic, closed-loop battery ecosystem" remains intact, even as they adjust their approach to match current market needs.
I am an investor in Ascend Elements through Alumni Ventures since 2023. This post reflects my personal views and analysis, not those of the company or its management. For more insights on mission-aligned companies, subscribe to this newsletter.