Ascend Elements Bankruptcy: EV Market Slowdown and Funding Loss

Sun, 12 Apr 2026 01:03:00 +0200

Battery recycling company Ascend Elements has initiated Chapter 11 bankruptcy proceedings in the United States, marking a significant setback for investors who have poured nearly $900 million into the enterprise. CEO Linh Austin announced the decision, citing “insurmountable” financial challenges. The company’s struggles are linked to a softening market for electric vehicles within the U.S. and were further exacerbated by the Trump administration's cancellation of a $316 million grant intended for a Kentucky facility. While EV sales have shown some resilience, rising interest rates and production slowdowns have impacted the sector. Ascend Elements had ambitious plans for a large-scale battery recycling operation, aiming to create a closed-loop system for electric vehicle battery materials. The loss of the grant and the current market conditions proved too difficult to overcome. The company's situation underscores the risks associated with relying on government funding and highlights th