SK ecoplant, a South Korean environmental and energy company, is teaming up with its subsidiary TES and Ascend Elements, a U.S. waste battery recycling firm, to create a joint venture for waste battery recycling in the United States. They will also begin constructing a pre-treatment facility as part of this initiative.
On September 26, a ceremony to mark the joint venture agreement took place at the SK ecoplant headquarters in Jongno-gu, Seoul. The event was attended by executives from the three companies: SK ecoplant, TES, and Ascend Elements. Notable attendees included Kyung-il Park, CEO of SK ecoplant, and Michael O’kronley, CEO of Ascend Elements, with TES Chairman Terence Ng participating via video conferencing.
This collaboration establishes the first Korean-American waste battery recycling company in the U.S., with ownership shares of 64% held by SK ecoplant, 11% by TES, and 25% by Ascend Elements.
The newly planned pre-treatment facility will be responsible for safely disassembling and shredding scrap materials generated during the electric vehicle battery manufacturing process. Additionally, it will extract black mass, a precursor used in battery raw material production.
A factory covering 9,290 square meters will be constructed in Hopkinsville, Kentucky, with an estimated investment of $65.8 million. This facility is expected to have an annual production capacity of 12,000 tons of black mass. Construction will commence in November, and full operations are scheduled to start in January 2025.
In the vicinity, Ascend Elements is in the process of building North America's first cathode material precursor plant, capable of supplying 750,000 electric vehicles annually, with the support of a $480 million grant from the U.S. government. This collaboration between the three companies is expected to create a strong synergy, covering both pre- and post-processing aspects of waste battery recycling.
Kentucky, chosen as the factory location, is gaining prominence as a hub for battery production in the U.S., the world's largest battery market. Located within this battery hub, Kentucky ensures a steady supply of scrap materials for recycling, making it strategically advantageous.
Ascend Elements, founded in Massachusetts in 2015, specializes in waste battery recycling and boasts innovative technologies for extracting rare metals and producing cathode material precursors. It recently signed a contract worth $1 billion to supply cathode material precursors to an undisclosed U.S. company, with potential to expand to $5 billion based on future demand.
SK ecoplant recognized Ascend Elements' innovative technology and invested $60.84 million through two rounds of funding, actively participating in the company's management. Ascend Elements received a $460 million Series D investment, increasing its valuation to around 2 trillion won, led by Temasek, Decarbonization Partners (a joint venture of Blackrock and Temasek), and Qatar Investment Authority.
The joint venture and pre-treatment plant established by SK ecoplant, TES, and Ascend Elements have significant implications for the global waste battery recycling market. They are strategically positioning themselves in the heart of the U.S. electric vehicle battery value chain and expanding their presence in the North American market, utilizing Ascend Elements' strong U.S. market position.
SK ecoplant and TES currently provide comprehensive waste battery management solutions worldwide, covering battery recovery, rare metal extraction, and recycling. With 46 facilities across 23 countries, they have built a global network for collecting waste batteries and are well-prepared to comply with regulations such as the U.S. Inflation Reduction Act (IRA) and the European Critical Raw Materials Act (CRMA).
Notably, they have strategically established regional facilities in key battery industry areas and regions with high electric vehicle adoption rates, including Europe, the U.S., and Asia. Using a hub-and-spoke strategy, they secure a consistent supply of feedstock for recycling scrapped and waste batteries.
To adhere to Basel Convention guidelines, TES has proactively obtained Basel permits in over 30 countries, ensuring compliance with regulations related to transporting collected waste to recycling facilities.
Furthermore, SK ecoplant and TES are maintaining collaborative efforts in waste battery recycling with prominent entities like GALP, Portugal's largest energy company, and EcoPro, a leading battery materials company in Korea. As the waste battery market expands, they are poised to play a crucial role in securing supplies and facilitating connections between major hub bases.
Kyung-il Park, CEO of SK ecoplant, said, "We have invested substantial efforts in internalizing technology across the entire waste battery recycling process and establishing major facilities worldwide.” He added, “With the formation of this joint venture and the construction of the factory, we have now achieved a competitive edge in the waste battery sector. Building upon this foundation, we are prepared to assert our dominance in the global waste battery market.”
