Ascend Elements announced Wednesday its officials had recently signed a multi-year contract to supply nearly $1 billion in high-nickel, NMC cathode precursor — or pCAM — for use in the battery manufacturing process, beginning in the fourth quarter of 2024.
In this agreement, the customer has the option to expand the contract to a larger order, potentially worth up to $5 billion.
According to industry specialists, the deal “signals a shift” in worldwide battery material supply chains — one that will eventually have a strong link in Christian County, as one of America’s first commercial-scale pCAM manufacturing facilities continues construction in Commerce Park II.
Using an innovative battery recycling process and a patented cathode engineering technology, the facility in Hopkinsville will reportedly be “one-of-a-kind,” capable of producing enough pCAM for up to 750,000 electric vehicles annually.
In October 2022, the U.S. Department of Energy awarded two matching grants totaling $480 million to Ascend Elements to help accelerate construction of the southwest Kentucky facility. Overall, the company plans to invest more than $1 billion in the facility, and those numbers have a sincere chance to increase in the coming months.
Mike O’Kronley, CEO of Ascend Elements, notes that nearly 100% of the world’s pCAM is currently produced in Asia. However, he writes there is “no reason” the U.S. can’t manufacture “critical battery materials,” and he called for the U.S. to create the materials needed for a secure supply chain, reduction in carbon shipping emissions, and improve energy independence.
