Ascend Elements’ Shift from CAM to pCAM: A Sensible Move for the U.S. Battery Market

Ascend Elements and the U.S. Department of Energy (DOE) scrapped plans for a $164 million grant to add CAM production capabilities to the Apex 1 facility under construction in Hopkinsville, Kentucky. Instead, they will focus solely on producing pCAM and lithium carbonate from recycled lithium-ion batteries at Apex 1, backed by another DOE grant for $316 million. Citing “changing market conditions,” this decision bypasses the U.S. CAM market—dominated by OEMs like Panasonic and chemical providers like BASF—and positions pCAM as a practical input for cell manufacturers with established CAM processes.

Ascend Elements’ Process

Founded in 2017 and headquartered in Westborough, Massachusetts, Ascend Elements recycles batteries from EVs, consumer electronics, and industrial scrap. The company shreds these batteries into “black mass,” a mixture of nickel, cobalt, manganese, lithium, and graphite. During this stage, Ascend employs an early-stage lithium recovery (ESLR) process, using indirect carbonation with graphite as the carbon source to extract lithium and produce lithium carbonate. After creating black mass, the company produces a collective product instead of individual metal salts using its patented Hydro-to-Cathode process. In that hydrometallurgical phase, impurities like copper, aluminum, and plastics are removed, leaving nickel, cobalt, and manganese. Ascend then adjusts these metals’ ratios by blending them with in-house produced metals and primary/secondary metals bought off the market, yielding pCAM.

The DOE Grants

Both grants stem from the 2021 Bipartisan Infrastructure Law, which set aside $7 billion to strengthen U.S. battery manufacturing and reduce dependence on foreign supply chains, particularly from China. The $164 million cost-share grant, awarded in October 2022, aimed to establish CAM production at Apex 1. CAM, a finished cathode material often made of nickel-manganese-cobalt (NMC) blends, would have positioned Ascend as a direct supplier to cell manufacturers. By late 2024, this plan was dropped. The $316 million grant, however, funds Apex 1’s construction, equipping it with shredding systems, indirect carbonation units for ESLR, and production lines for pCAM and lithium carbonate. This grant supports infrastructure—not material production—bolstering U.S. domestic capacity. The CAM grant’s cancellation reflects a shift toward a product with better-defined demand.

The U.S. CAM Market

U.S. CAM production is limited, with few players involved. Panasonic supplies Tesla’s Nevada Gigafactory, while BASF operates plants in Ohio and Michigan. Most CAM used in the U.S. is imported from Asia—China, South Korea, and Japan—through companies like LG Chem and Sumitomo Metal Mining. Some U.S. cell manufacturers, like Samsung SDI and LG Energy Solution, produce CAM in-house, but beyond these, domestic CAM capacity is sparse. Ascend initially sought to fill this gap but retreated, likely due to the difficulty of breaking into a market where established sources meet specific needs.

pCAM’s Complementary Role

Producing pCAM at Apex 1 complements primary sources. As an intermediate blend of nickel, manganese, and cobalt, pCAM allows manufacturers to craft their own CAM, fitting smoothly into existing processes. Domestic EV battery waste—projected to exceed 200,000 metric tons annually by 2027 (Congressional Research Service: Critical Minerals in Electric Vehicle Batteries)—ensures a steady raw material supply. pCAM’s carbon footprint is lower than that of mined materials, with studies showing up to 90% less carbon use, and at a substantially lower cost than pCAM produced using primary materials. This supports sustainability goals despite its smaller scale compared to mined metals.

Market Dynamics

Cell manufacturers building in the U.S., such as StarPlus Energy (a Stellantis-Samsung SDI joint venture), LG Energy Solution, and SK On, rely on well-developed CAM recipes and processes. These firms source CAM from trusted Asian suppliers or produce it in-house at facilities like StarPlus Energy in Indiana, LG Energy Solution in Tennessee and Michigan, and SK On in Georgia with Hyundai. Their methods, built for specific chemistries like NMC 811 or 622, reduce the need for an external CAM supplier like Ascend. Switching to a new CAM source risks disrupting quality controls and economies of scale honed over years. pCAM, however, offers a practical input they can adapt to their systems. When Apex 1 begins operations in 2025, its pCAM and lithium carbonate from recycled material will target this niche, though primary CAM will still lead due to its volume.

Conclusion

Ascend Elements’ decision to drop CAM production and its associated grant to only produce pCAM, backed by a $316 million grant, fits a U.S. market where cell manufacturers like StarPlus Energy, LG Energy Solution, and SK On stick to entrenched CAM processes, leaving little room for new CAM suppliers. pCAM, derived from black mass and tailored to an OEM’s specific requirements for their CAM process, adds value and allows more OEMs to produce CAM using domestically sourced recycled material as well as primary sources. With battery recycling on the rise, Apex 1’s role will grow, meeting a real demand in the U.S. battery supply chain and possibly cutting reliance on imported materials over time—a move that matches both market needs and national security goals.