Ascend Elements, a battery recycling startup based in Westborough, Massachusetts, filed for Chapter 11 bankruptcy protection on Thursday amid mounting financial challenges. The company, which processes used batteries into cathode materials at its facility in Georgia, cited “insurmountable” financial difficulties as the reason for the voluntary bankruptcy filing, according to a statement from Chief Executive Officer Linh Austin.

Founded in 2015, Ascend had raised over $1.1 billion in equity and grants, drawing investment from prominent backers such as Temasek, Qatar Investment Authority, and BHP Ventures. Despite its substantial funding, the firm struggled to scale its operations in an industry described by Austin as “capital intensive and complex.” The company’s business model aligned with U.S. efforts to reduce dependency on battery materials sourced from China, tapping into the growing demand for sustainable battery supply chains.

The bankruptcy follows the cancellation of a $316 million government grant awarded during the Biden administration but revoked last October. This loss of support compounded the financial strain on Ascend, which joins a list of climate technology startups facing significant setbacks over the past year. Other notable examples include 24M Technologies, a battery developer that ceased operations in March, and Sublime Systems, a green cement company that downsized dramatically after losing a key government grant.

While investment in climate technology sectors saw modest growth in 2025, much of that capital has been concentrated in areas like geothermal and nuclear energy, which have benefited from expanding data center infrastructure. Ascend’s bankruptcy highlights the challenges still confronting emerging recyclers aiming to establish new supply chains for critical battery materials in an evolving market.