Ascend Elements, an electric vehicle battery materials manufacturer, has announced a reduction in its production plans at the Apex 1 facility located in Hopkinsville’s Commerce Park II. This decision follows the mutual cancellation of a $164 million federal grant with the U.S. Department of Energy (DOE), which was allocated for part of the manufacturing infrastructure at the plant.
Due to “changing market conditions,” Ascend Elements will no longer produce cathode active material (CAM), a critical component in lithium-ion batteries, at the Hopkinsville site. Instead, the company will focus on producing precursor cathode active material (pCAM) and lithium carbonate at the facility. The $316 million DOE grant designated for the pCAM infrastructure remains intact, with Ascend Elements having already received $205 million of the funds.
Initially, the Apex 1 plant was projected to create 250 jobs based on a $310 million investment. However, prior to the groundbreaking ceremony in October 2022, the project secured an additional $480 million in DOE grant funds under the Infrastructure Investment and Jobs Act. This included $164 million for CAM manufacturing infrastructure and $316 million for pCAM manufacturing infrastructure.
“It’s the largest economic development project in Christian County,” Gov. Andy Beshear said at the ground-breaking ceremony. “And now … the largest investment in Western Kentucky.”
Future expansions could elevate the total investment to $1 billion and increase employment to over 400 positions.
“We are grateful to the U.S. DOE for selecting Ascend Elements to receive this funding, but current market conditions do not support advancement of the CAM project at Apex 1,” said Roger Lin, vice president of government affairs at Ascend Elements. “We are 100% committed to completing construction of the Apex 1 campus in Hopkinsville, Kentucky, but the facility will only produce pCAM and lithium carbonate, a critical mineral. We’re just not seeing significant market demand for CAM right now, but we have buyers lined up to purchase sustainable, domestically produced pCAM and lithium carbonate.”
The Apex 1 facility is scheduled to become operational in the third quarter of 2026. Ascend Elements remains dedicated to contributing to the local economy and the broader electric vehicle market through its focused production efforts.
Source: Kentucky Lantern
