Ascend Elements battery recovery files for download

Ascend Elements said on Friday it had filed for Chapter 11 bankruptcy in the US, a major setback for investors who had invested about $900 million in the company.

Linh Austin, Get onThe CEO, announced the decision in post on LinkedIn. He said the company was facing “impossible” financial problems.

The Ascend listing comes amid a soft electric car market in the US and may have been boosted by the Trump administration’s decision to. canceling $316 million in aid the purpose of the Kentucky facility that was being built. At the time, a total of $204 million was offered, but Ascend had to look for additional funds to solve the problem.

The market for EVs in the US has recently reached its peak. Although sales rose before tax rates expired in September last year, they were nowhere to be found. Analysts predicted that customers who might have bought this year delayed their purchases to take advantage of the credit, but that didn’t help ease the fears of automakers.

Since then, several automakers have dialed back their plans for new EVs in the U.S. For example, Volkswagen said yesterday that it was. able to create an ID.4 at its Chattanooga, Tennessee plant, in favor of the gas-powered Atlas.

Ascend has developed a process to extract essential minerals from waste and used batteries. It says its method reduces the number of steps needed to turn scrap metal into the starting material for new cathodes.

The company has been building 1 million units in Kentucky that have been plagued by lawsuits and delays, according to local reports.

Like many battery-related startups, Ascend was entering a difficult and challenging industry. The biggest market for battery cells is EVs, but automakers have long lead times, and their specifications are known to change over time. Chinese producers, who benefit from regular and generous subsidies, have been controlling the market and lowering costs.

Other recycling startups like Redwood Materials have followed suit reusing some of the package which flow through their fundraising network. The startup developed a way to combine different types of packs into large, grid-style batteries that can power data centers. The real estate market has exploded in recent years, allowing Redwood to tap into the cash flow while continuing to build its recycling business.