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R3 Lithium is scaling from the ashes of bankrupt battery recycler Ascend Elements, with plans to raise around $90 million in a Series B, CEO Linh Austin tells Axios Pro exclusively.

What's next: Proceeds will add a second lithium carbonate production line to the Covington, Georgia, plant that it bought from Ascend Elements.

R3 Lithium plans to start working on the equity-and-debt fundraise "pretty soon," Austin says.

Catch up quick: Investors and the U.S. government funneled over $1 billion into Ascend and its facilities over a decade-plus. Austin joined the board in 2024 and became CEO in 2025.

The company filed for Chapter 11 bankruptcy in April after running out of money while trying to build a large battery materials plant in Kentucky.

Zoom in: After Ascend's bankruptcy, R3 Lithium was formed. Led by Austin, it closed a $15 million Series A round last month from TDK Ventures — $3 million of which was used to buy the Covington plant.

That plant reprocesses old batteries into lithium carbonate, which turns into new cathodes for batteries. Proceeds from the equity-and-debt Series B round would be used to add a second lithium carbonate production line

What they're saying: "The ability to join with some investors to pick this up out of bankruptcy, free and clear of the legacy liabilities — it was just really a compelling opportunity," says Austin.

"We evaluated R3 as a fresh investment. Our conviction rests on the combination of an existing industrial asset, a team with direct operating experience, and a focused plan built around lithium carbonate," says TDK Ventures President Nicolas Sauvage.

The big picture: Battery recycling is a tough, capital-intensive business, and it's been challenged by the slower-than-expected EV market in recent years.

Between the lines: Ascend was overextended, trying to scale too many materials with too many plants, according to Austin and Sauvage.

Its management team also lacked operational experience, says Austin.

The Trump administration last year canceled a $316 million grant intended to build out Ascend's Kentucky facility, only adding to the strain.

R3's plan, in contrast, is to get one plant up and running efficiently.

What we're watching: R3 Lithium is using the rest of the Series A to buy gear for the facility to make it operate more efficiently and plans to relaunch the line by July of 2027.

Exclusive: R3 Lithium plans Series B in the range of $90M

The company is emerging from the ashes of bankrupt battery recycler Ascend Elements.

Industrial factory: worker with blue hard hat and mask raises a yellow tool over a conveyor with metal trays bearing green circles; yellow safety rails and large machinery surround.

A worker on the lithium carbonate line at R3's facility in Covington, Georgia. Photo: Courtesy of R3 Lithium

R3 Lithium is scaling from the ashes of bankrupt battery recycler Ascend Elements, with plans to raise around $90 million in a Series B, CEO Linh Austin tells Axios Pro exclusively.What&#x27;s next: Proceeds will add a second lithium carbonate production line to the Covington, Georgia, plant that it bought from Ascend Elements.

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Exclusive: R3 Lithium plans Series B in the range of $90M

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