Cinis Fertilizer AB has signed an agreement with Ascend Elements, Inc., a leading American manufacturer of engineered battery materials. The agreement pertains sourcing of sodium sulphate, an input for Cinis Fertilizer’s production of environmentally friendly mineral fertilizer.
This agreement and collaboration with K+S Minerals and Agriculture GmbH, a global potash player and Europe’s largest salt producer lay the foundation for Cinis Fertilizer to establish a production plant in the US state of Kentucky. The plant will be the third after the company’s first two plants in Sweden. The establishment in the USA is part of Cinis Fertilizer’s growth plan to reach a production of 1.5 million tons of potassium sulphate in six facilities at the end of the year 2030. The investments in Cinis Fertilizer’s US plant are estimated to amount to SEK 1 billion.
Cinis Fertilizer today signed a ten-year agreement with Ascend Elements, an independent manufacturer of advanced engineered battery materials with operations in multiple locations in the USA, that is currently building its largest facility in Hopkinsville, Kentucky. The agreement pertains to sourcing up to 240,000 tons per annum of sodium sulphate starting in 2026. Cinis Fertilizer has entered into a letter of intent with K+S regarding the sale (off-take) of the finished product, potassium sulphate, and also to purchase of potassium chloride from K+S’ facilities in Saskatchewan in Canada to Cinis Fertilizer’s plant in Hopkinsville. Cinis Fertilizer’s plant is scheduled to start in 2026, with the capacity to produce up to 300,000 tonnes of potassium sulphate per annum for the North American market.
Cinis Fertilizer’s business concept is to produce environmentally friendly mineral fertilizer by using half as much energy as today’s production methods, resulting in a fossil-free fertilizer with a close to zero carbon footprint. A unique contribution to a more sustainable agriculture industry.
“In the past year, we have experienced massive international interest in our environmentally friendly fertilizer, where circularity and fossil-free production are key. For manufacturers of batteries, it is important that the entire production chain meets high requirements for resource efficiency and environmental friendliness. The agreement with Ascend Elements in addition to the letter of intent with K+S, which includes the purchase of our full plant production capacity, gives us the confidence we need to establish Cinis Fertilizer on the American market,” says Jakob Liedberg, founder and CEO of Cinis Fertilizer. “The fast growth of industrial in connection with the Inflation Reduction Act, currently taking place in the USA contributes to our decision to carry out Cinis Fertilizer’s expansion in North America. This was further strengthened by the great interest shown by prominent investors in their recent investments in Ascend Elements.”
Cinis Fertilizers is considered facility in Hopkinsville
The facility will be built in close vicinity to Ascend Elements’ operations in Hopkinsville, which entails cost-effective logistics solutions. Cinis Fertilizer has entered into an agreement with the city of Hopkinsville regarding the purchase of land for the plant and has begun discussions with a regional power supplier regarding the supply of fossil-free electricity.
The investments in Cinis Fertilizer’s plant in Hopkinsville are estimated to amount to SEK 1 billion and financing is planned through internal cash flows and loans. The company is also investigating supplementary financing solutions, which include state and federal investment grants.
“It is fantastic that Cinis Fertilizer is taking a first step outside the Nordics and continuing our planned expansion. We are very pleased to have Ascend Elements as a long-term partner, and we look forward to embarking on our journey together and further developing our collaboration. Ascend Elements is a leading manufacturer of battery materials, specifically so-called precursors (“pCAM”) to the North American market for lithium-ion cells, primarily used in electric vehicles,” says Jakob Liedberg. “We recently signed a long-term agreement with K+S regarding the purchase of potassium chloride for our first two facilities in Sweden. The collaboration with K+S in North America we believe has good opportunities to develop into a global partnership.”
Cinis Fertilizer is currently building its first production facility outside of the town of Örnsköldsvik in Sweden, with a planned start-up in early 2024. Design for the company’s second Swedish facility, in Skellefteå, is ongoing and production is scheduled to start in mid-2025. Cinis Fertilizer’s growth plan includes 1.5 million tons of potassium sulphate in six facilities by the end of 2030, of which three locations now are designated.