Alliance Resource Invests $25 Mln In Ascend Elements

(RTTNews) - Alliance Resource Partners, L.P. (ARLP), a diversified natural resource company, announced on Wednesday that it has invested $25 million in Ascend Elements, Inc. a manufacturer of battery materials for electric vehicles.

This is part of the $460 million Series D funding round and when combined with $480 million in total grants awarded by the Department of Energy, Ascend Elements is expected to further the construction of North America's first commercial-scale manufacturing facility to produce cathode materials for electric vehicles in Kentucky.

"Beyond this initial investment, we look forward to exploring more strategic opportunities with Ascend Elements to expand our investment in the battery recycling industry and leverage our unique operational expertise, geographic footprint, and strategic relationships in Kentucky and the surrounding battery-belt states to further unlock value and growth for both companies," said Joseph Craft, ARLP's Chief Executive Officer.

The manufacturing facility which is one million-square-foot will produce cathode materials for 750,000 electric vehicles per year.

Ascend Elements had also signed a $1 billion contract earlier this year to supply cathode materials in the fourth quarter of 2024 with options to expand the multi-year contract to a larger volume valued up to $5 billion.

Tuesday, shares of Alliance Resource closed at $19.74 down 0.85% on Nasdaq.