A Massachusetts company said Thursday it is canceling plans for a new manufacturing line in Kentucky that would make a key component for electric vehicle batteries and returning a $164 million Department of Energy grant.
Ascend Elements cited challenging market conditions and tepid demand for cathode active material (CAM) as the reason for the decision. Ascend is building a factory in Hopkinsville, Kentucky, that was originally supposed to produce CAM and cathode precursor (pCAM).
Company executives said they still intend to complete the factory, which will produce pCAM and lithium carbonate.
“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,” said Ascend Vice President of Government Relations Roger Lin in a statement. “By voluntarily returning the CAM grant, we are freeing up $164M of federal funding for the current administration to reallocate as it deems most appropriate.”
