SK Ecoplant, Majority Investor in 'Ascend Elements', Hits $1 Billion Jackpot in Orders

Signed Supply Contract for Anode Material Precursors with US Automaker

Ascend Elements, a US battery recycling company invested in by SK ecoplant as the largest shareholder, has landed a $1 billion (approximately 1.28 trillion KRW) order jackpot.

Park Kyung-il, President of SK Ecoplant (right), and Michael O'Kronley, CEO of Ascend Elements, posing for a commemorative photo in August last year. (Provided by SK Ecoplant)

Ascend Elements announced on the 7th (local time) that it signed a contract to supply precursor materials for cathode active materials (pCAM) to a major US automaker starting from the fourth quarter of 2024. The contract is worth at least $1 billion, and the supply volume could expand up to $5 billion (approximately 6.397 trillion KRW) depending on customer demand.

Cathode active materials are key components that determine battery performance such as capacity and output, accounting for 40% of the production cost of electric vehicle batteries. Precursors are the most important basic materials used to make cathode active materials.

Founded in Massachusetts in 2015, Ascend Elements is a battery recycling specialist and is considered one of the fastest-growing companies in the North American market. It has secured not only technological competitiveness but also cost competitiveness due to the simplification of individual metal extraction processes.

SK ecoplant recognized Ascend Elements’ technological capabilities and growth potential, investing a total of $60.84 million (approximately 77.8 billion KRW), including $50 million (approximately 63.9 billion KRW) in August last year and $10.84 million (approximately 13.9 billion KRW) in April this year, securing the largest shareholder status and one board seat.

Ascend Elements is currently constructing the first commercial production facility for cathode active material precursors in North America, located in Hopkinsville, Kentucky. Upon completion, it will be able to produce precursors sufficient to supply cathode active materials for 750,000 electric vehicles annually.

Choi Eun-young, SK ecoplant’s Global Environmental Investment Executive and a board member of Ascend Elements, said, "By participating in Ascend Elements’ management and further strengthening strategic cooperation between the two companies, we will secure innovative technology and a stable supply-demand network to lead the global battery recycling market, including North America."

This content was produced with the assistance of AI translation services.