The startup R3 Lithium plans to operate an electric vehicle battery recycling facility in Covington, Georgia, after acquiring the plant on July 26 from its former operator, Ascend Elements. The move comes months after Ascend entered Chapter 11 bankruptcy proceedings, making the deal a test of whether U.S. battery recycling assets can remain viable despite disruptions in financing and policy.
Ascend announced in April that the bankruptcy proceedings stemmed from a construction-related dispute, the cancellation of federal grants, and declining lithium prices, in addition to financial problems and existing obligations that predated the current management, according to the source. In 2025, the Georgia facility produced battery-grade lithium carbonate with a purity exceeding 99% at commercial scale, from end-of-life batteries and scrap.
From Ascend to R3 Lithium
R3 Lithium says it acquired the site without the previous liabilities, after its former owner had invested approximately $150 million in it. The company also retained part of the team that designed the commercial production processes in 2025, including Linh Austin, who serves as chief executive officer, while Eric Gratz, one of Ascend’s co-founders, became R3’s chief technology officer.
R3 also announced a $15 million Series A funding round with participation from Integral GlobalTech Partners, TDK Ventures, Axial Partners, and other investors. The company is allocating the funding to upgrade its lithium carbonate production line. It says it already has future purchase agreements worth more than $1 billion, including an agreement with Trafigura, the global commodities supplier.
Facility Capabilities and Processing Plan
R3’s process involves recovering and refining lithium and returning it to the domestic battery supply chain at the same site. The process includes crushing what is known as “black mass” produced from recycled batteries, followed by calcination-based crystallization and aqueous precipitation, without primary mining or reliance on refining operations outside the United States.
The facility’s stated crushing capacity is 30,000 metric tons per year, while the lithium carbonate production line has a capacity of 2,500 metric tons per year, with space allocated to add another line with the same capacity. The company says the process also produces concentrated metal oxides containing nickel, cobalt, manganese, and graphite, byproducts that could support operating economics.
R3 expects to reach full operation sometime next year and estimates that the facility could account for more than half of the lithium carbonate supply produced in the United States. Its plan also includes establishing a network of lithium carbonate and black mass crushing facilities in North America and Europe, with modular units each capable of processing 5,000 metric tons per year, with their deployment tied to future purchase agreements.
Why Does This Matter?
The facility’s transfer to a new owner alone does not demonstrate that the risks of a lithium shortage have ended, but it shows that battery recycling has become part of the proposed domestic infrastructure for reducing dependence on foreign supply chains and primary mining. Sources of spent batteries could eventually expand to include stationary energy storage systems, in addition to vehicle batteries, as the use of these systems grows.
By contrast, the production figures and targeted market share remain projections issued by R3 rather than completed operating results. In addition, the material published on September 8 predates the official announcement that the company said would be issued on September 10, so the details of actual operations, commercial capacity, and financial continuity require independent follow-up. The project’s impact on lithium supplies for electric vehicles also remains uncertain, particularly as energy storage, drones, and other sectors compete for recycled materials and batteries.