Ford, Volvo join EV battery recycling startup in California
Ford and Volvo Cars will partner with EV battery recycling startup Redwood Materials in California, United States. These companies will collect end-of-life batteries from electric and hybrid vehicles, develop processes and recover materials for use in new batteries.
Redwood Materials that has been co-founded by former Tesla executive JB Straubel, formed a partnership last year with Ford to develop a “closed-loop" or circular supply chain for EV batteries, from raw materials to recycling. The startup stated it would work directly with dealers and dismantlers in California to identify and recover end-of-life battery packs. The materials in these packs will be recovered and recycled at the company's facilities in northern Nevada.
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The company reportedly said it will demonstrate the value of end-of-life EV batteries and this indeed will steadily improve those economics as volumes go up. “Ultimately, our aim is to create the most effective and sustainable closed-loop system that physics and chemistry will allow for end-of-life battery packs to re-enter the domestic supply chain," said the startup company.
Previously, US auto majors such as Ford and General Motors had stated the battery recycling effort is crucial in order to develop a domestic supply chain to meet the increasing demand for EVs. Battery partner LG Energy Solution and GM last year announced a partnership with startup Li-Cycle to recycle battery scrap material from Ultium Cells, the GM-LG joint venture that is establishing battery factories in Ohio, Tennessee and Michigan.
Redwood Materials also has similar collaborations with battery manufacturers such as Panasonic in Nevada and Envision AESC in Tennessee, as well as with Amazon. Also, Ford and Amazon are among the investors in Redwood Materials.
(With inputs from Reuters)