South Korean energy and environmental solutions provider SK Ecoplant said Monday that it has secured over $98 million by selling its stake in the American battery recycling firm Ascend Elements, as part of its initiative to restructure its recycling business portfolio.

SK Ecoplant had invested over $60.8 million in Ascend Elements since 2022. It sold its entire stake of approximately 9.2 million shares to SKS PE, a Seoul-based private equity firm, according to the company’s regulatory filing submitted Monday.

The company’s decision to restructure its investment focus aligns with its recent initiative to concentrate on its recycling subsidiary, SK Tes, in response to the growing demand for parts recycling in the information technology sector, also known as IT asset disposition.

SK Tes, acquired by SK Ecoplant in February 2022, operates a hyperscale facility in Virginia capable of handling up to 600,000 individual servers annually. The facility specializes in securely destroying data from hard drives, memory and other server components, as well as reusing and recycling these materials.

Additionally, SK Ecoplant expects SK Tes to generate synergies through cooperation with Essencore, a Hong Kong-based semiconductor module company that SK Ecoplant plans to acquire this year. IT products and materials processed by SK Tes will be used in Essencore’s products, such as DRAM memory modules, SSDs, SD cards, and USB drives. SK Ecoplant is also considering supplying essential metals -- from recycled materials -- for global semiconductor manufacturers.

Regarding the recent sale of its stake in Ascend Elements, SK Ecoplant stated, “Through strategic investment, SK Ecoplant has secured stability and strengthened its financial position. ... The company will continue enhancing its competitiveness in the recycling sector, including battery recycling, while also improving financial stability."