R3 Lithium has emerged as a battery recycling venture occupying a facility in Covington, Georgia, that was previously operated by Ascend Elements before the company filed for Chapter 11 bankruptcy. The acquisition occurred on July 26, with R3 obtaining the site—which represented approximately $150 million in prior investment—without assuming liabilities. The move represents an effort to strengthen domestic lithium supply chains amid concerns about potential bottlenecks as electric vehicle adoption expands globally.
Ascend Elements encountered financial difficulties stemming from multiple factors, including a dispute related to its Kentucky manufacturing plant, cancellation of federal grants, and a downturn in lithium prices. The company’s leadership indicated that longstanding financial issues also contributed to the Chapter 11 filing earlier this year. Despite the bankruptcy proceedings, the Georgia facility had achieved a notable milestone in 2025 by becoming the first commercial-scale U.S. plant to produce lithium carbonate at 99-plus-percent purity from recycled end-of-life batteries and scrap materials.
R3 Lithium has retained the existing management team, including former Ascend CEO Linh Austin, and secured $15 million in Series A funding to upgrade production capabilities. The company has also retained significant offtake contracts, including a longstanding agreement with commodities supplier Trafigura, valued at more than $1 billion in total contracts. The funding will support enhancements to the lithium carbonate production line at the facility.
The company’s operations are expected to announce formally on September 10 and reach full capacity sometime next year. R3 projects that the Covington facility will eventually account for more than half of all U.S.-produced lithium carbonate supply. The facility employs a vertically integrated process designed to avoid dependence on overseas refiners, recovering and refining battery materials domestically through calciner-based crystallization and water-based precipitation methods. R3 plans to establish additional production facilities across North America and Europe in modular configurations.
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