Ascend Elements, a lithium-ion battery manufacturer, has signed a multi-year contract to supply nearly USD 1 billion worth of sustainable cathode precursor (pCAM) to a US battery manufacturer, starting in Q4 2024. According to the agreement, the customer has the option to increase the contract's volume, potentially reaching a value of up to USD 5 billion.

Analyst QuickTake: The contract obtained by Ascend Elements positions the company as a prominent supplier of pCAM, aligning with its long-term goal to expand operations worldwide and process 150,000 metric tons of lithium-ion batteries per year. To support the growing demand, in March 2023, the company launched its lithium-ion battery recycling facility in Covington, Georgia , which can process 30,000 metric tons of used batteries annually. The company is also constructing a facility in Hopkinsville, Kentucky, which will produce pCAM for up to 750,000 electric vehicles per year.