Cinis Fertilizer, a Swedish company that converts industrial waste into sulfate of potash (SOP) fertilizer, has decided to prioritize the construction of its planned Hopkinsville, Kentucky, facility over its Skellefteå, Sweden, facility. The Kentucky facility is expected to be operational in 2025, with a production capacity of up to 300,000 tons of potassium sulfate.

According to the company, the Kentucky facility, which would receive sodium sulfate from Ascend Elements , a cathode-material recycling company, has been prioritized due to the rapid expansion of the North American EV battery market, fueled by favorable government incentives and battery manufacturers shifting focus from Europe.

The expansion will be funded through a combination of internal cash flows and external loans. The company is also exploring other financing options, such as state and federal investment grants.

Analyst QuickTake: The Kentucky facility will be the company’s second plant after Örnsköldsvik (planned to be operational in early 2024). The decision to prioritize the plant follows the signing of an agreement with Ascend Elements in September 2023 for the supply of sodium sulfate. During the same month, the company also entered a letter of intent with K+S for the sale of its potassium sulfate end-product and the purchase of potassium chloride for use at the Kentucky facility.