FRANKFORT, Ky. (Sept. 28, 2023) – Today, Gov. Andy Beshear highlighted another significant investment in Kentucky’s rapidly growing electric vehicle (EV) sector, as Ascend Elements and SK ecoplant have announced plans to construct a $65.8 million lithium-ion battery recycling facility in Christian County that will create 60 full-time jobs for Kentuckians.
“I want to once again thank Ascend Elements for investing in the commonwealth, as well as welcome its new partner, SK ecoplant, to our state,” Gov. Beshear said. “Our automotive and EV-related growth has shown no signs of slowing down as we continue to position ourselves as the national leader in the electric future. This is another great project bringing dozens of quality jobs to West Kentucky, and I look forward to all this partnership can achieve as part of Team Kentucky.”
The project to build a 100,000-square-foot facility comes as part of a joint venture between Ascend Elements, SK ecoplant and its subsidiary, TES. Construction is expected to begin in November with completion scheduled for January 2025. The operation will annually produce around 12,000 metric tons of black mass, a fine powder that contains the valuable cathode and anode materials inside an EV battery.
The black mass produced at the Hopkinsville facility will help supply Ascend Elements’ nearby Apex 1 engineered battery materials facility, an approximately $1 billion project announced in 2022 that is currently under construction. Apex 1 is on schedule to begin operation in 2024 and will be North America’s first sustainable cathode precursor (pCAM) and cathode active material (CAM) manufacturing facility. At full capacity, the Apex 1 project will produce enough pCAM for approximately 750,000 new EVs each year.
“With this joint venture, we are deepening our relationship with SK ecoplant and also reaffirming our commitment to Southwestern Kentucky,” said Michael O’Kronley, CEO of Ascend Elements. “The EV battery materials industry will continue to grow in the United States, and Kentucky is at the center of it all. I’d like to thank Gov. Beshear and his staff for their partnership as we work to accelerate the global transition to clean energy and bring good jobs to the community.”
Ascend Elements was founded in 2015 and is based in Westborough, Massachusetts. The company is the leading provider of sustainable, closed-loop battery material solutions. Its hydro-to-cathode direct precursor synthesis technology produces new CAM from spent lithium-ion cells more efficiently than traditional methods, which results in lower costs and greenhouse gas emissions.
Serving as the key player of SK Group’s green business, South Korea-based SK ecoplant changed its name from SK Engineering and Construction in May 2021 and expanded into an environmental energy solutions business. The company has undertaken more than 100 projects in various international locations. Its affiliated company, TES, is a global organization specializing in sustainable technology lifecycle services and e-waste recycling in Singapore, which operates 46 treatment facilities in 23 countries.
Christian County Judge/Executive Jerry Gilliam highlighted the additional job creation for the region: “Christian County is thrilled to welcome SK ecoplant, our region’s 23rd international company, while supporting Ascend Elements’ continued growth in our region. Christian County and our region remain hot spots for industrial development, with this latest announcement being another significant opportunity for Southwestern Kentucky. We look forward to working with company leadership and ensuring they take full advantage of our young, diverse and growing workforce in our less taxing, more relaxing environment.”
Hopkinsville Mayor James Knight welcomed the joint venture to the community: “The city of Hopkinsville welcomes Ascend Elements’ newest partner, SK ecoplant, to our community recognizing the tremendous opportunity the joint venture will create in new jobs and significant capital investment. On behalf of our residents and city council, I pledge the city’s full support to ensure the partnership’s success for years to come.”
Carter Hendricks, executive director of the South Western Kentucky Economic Development Council, thanked those who played a role in making this project possible: “We are honored to welcome our first South Korean company as part of the joint venture with Ascend Elements. We thank the company’s leadership and vision to create nearly 60 awesome jobs and a $65 million capital investment. We also offer our sincere appreciation to Gov. Andy Beshear, Cabinet for Economic Development Secretary Jeff Noel, TVA Vice President of Economic Development John Bradley and city and county governments for providing a business-friendly region.”
John Bradley, TVA senior vice president of Economic Development, welcomed the addition to the commonwealth: “TVA and Pennyrile RECC congratulate Ascend Elements and SK ecoplant on their decision to establish operations in Christian County. Helping to attract and retain quality jobs and investment in the region is fundamental to TVA’s mission of service. We are proud to partner with the South Western Kentucky Economic Development Council, city of Hopkinsville, Christian County and the Kentucky Cabinet for Economic Development to further that mission and look forward to the joint venture’s future business success.”
The joint investment and job creation builds on recent economic momentum in the commonwealth.
Last month, Gov. Beshear reported that General Fund receipts for July 2023 totaled $1.1 billion, marking the 11th straight month with revenues over $1 billion. The Governor also recently announced that his administration secured the largest General Fund budget surplus and Rainy Day Fund, as well as the most jobs filled in state history.
The General Fund budget surplus at the end of fiscal year 2023 was more than $1.55 billion. Nearly all of the $1.55 billion surplus will go into the commonwealth’s Rainy Day Fund, bringing the fund to a record balance of $3.7 billion – a 2,700% increase since Gov. Beshear took office in 2019.
This year, the Governor announced that Kentucky set the record for the longest period with the lowest unemployment rates in state history.
Since the beginning of his administration, Gov. Beshear has announced nearly 900 private-sector new-location and expansion projects totaling over $27.5 billion in announced investments, creating 48,000 jobs. This is the highest investment figure for any governor in state history.
The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 was $26.78 before benefits, the second-highest mark since 2010 and an 11.5% increase over the previous year.
The Governor also secured the best two-year period in state history for economic growth and announced the two largest economic development projects in state history. In September 2021, Gov. Beshear and leaders from Ford Motor Co. and SK On celebrated a transformative $5.8 billion investment that will create 5,000 jobs in Hardin County. In April 2022, the Governor was joined by leadership at AESC to announce a $2 billion investment that will create 2,000 jobs in Warren County. These announcements solidify Kentucky as the EV battery production capital of the United States.
That position was strengthened even further in May 2023, when the Governor and leaders at Toyota announced a $591 million investment across multiple projects as the company’s largest manufacturing operation in Georgetown introduced its first battery electric vehicle. Growth within the EV sector continued into June as Gov. Beshear joined INFAC North America to break ground on the company’s $53 million investment to support EV-related production in Campbellsville.
Over a two-month period this year, Kentucky secured two credit rating increases from major agencies. On May 12, Gov. Beshear announced that his administration obtained the first state-level credit rating upgrade in 13 years and the first-ever upgrade from Fitch Ratings. On June 29, Gov. Beshear announced the commonwealth received its first-ever rating increase from S&P Global Ratings. Yesterday, Moody’s Investors Service upgraded Kentucky’s credit outlook from stable to positive.
Site Selection magazine recently placed Kentucky first in the South Central region and top-5 nationally in its 2023 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects. The publication also placed Kentucky second nationwide and first in the South Central region for its annual Governor’s Cup ranking for 2022, which recognizes state-level economic success based on capital investments.
Gov. Beshear announced a new “Supply Kentucky” initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) today preliminarily approved a 15-year incentive agreement with Ascend Elements under the Kentucky Business Investment program. The performance-based agreement can provide up to $2 million in tax incentives based on the company’s investment of $65.8 million and annual targets of:
- Creation and maintenance of at least 53 Kentucky-resident, full-time jobs across 15 years; and
- Paying an average hourly wage of $34 including benefits across those jobs.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, the company can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
For more information on Ascend Elements, visit AscendElements.com. To learn more about SK ecoplant, visit SKecoplant.com.
A detailed community profile for Christian County can be viewed here.
Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.
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