United States Reaches $7.5 Million Settlement with Ascend Elements to Resolve False Claims Act Allegations Involving Department of Energy Grant

LOUISVILLE, KY – U.S. Attorney Kyle G. Bumgarner of the Western District of Kentucky announced today that Ascend Elements, Inc., a Massachusetts-based lithium-ion battery materials manufacturer, has agreed to pay $7,497,555.65 to resolve civil allegations that it submitted inflated reimbursement claims to the U.S. Department of Energy (DOE) for work on its Apex‑1 battery materials project in Hopkinsville, Kentucky.

The settlement resolves the United States’ contention that, between September 18, 2023 and February 18, 2025, Ascend sought and received DOE reimbursement for goods and services that included inflated labor hours, excessive tool purchases, unnecessary equipment rentals, and other wasteful or unnecessary expenses related to its industrial-scale battery precursor production project. DOE paid more than $5.3 million tied to this conduct.

Ascend voluntarily divulged the issues to the government and received credit for its cooperation, which included a timely self-disclosure, an internal investigation, and assisting the United States in understanding the full scope of the conduct.

“This settlement reflects the Department of Justice’s commitment to ensuring that federal funds supporting critical energy and infrastructure projects are safeguarded from misuse,” said Kyle Bumgarner, United States Attorney for the Western District of Kentucky. “Companies that receive taxpayer dollars must be held to the highest standards, and today’s recovery demonstrates that voluntary self-disclosure and cooperation will be met with appropriate credit, while still ensuring accountability.”

Assistant United States Attorney Jessica R. C. Malloy handled this matter for the United States, with support from the U.S. Department of Energy.

The claims resolved by this settlement are allegations only. There has been no determination of liability.

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