Redwood Materials will recycle GM’s battery scrap
Redwood Materials, a battery recycling initiative founded by Tesla’s former co-founder JB Straubel, will recycle production scrap from batteries used in General Motors‘ electric vehicles. The company announced that it is partnering with Ultium Cells, a joint battery manufacturing venture between General Motors and LG Energy Solution, to recycle cathode, anode and cell scrap from its Warren, Ohio, and Spring Hill, Tennessee facilities. Redwood Materials received a $2 billion loan from the US Department of Energy for its recycling facility investment.
The battery recycling industry has become a booming sector in the US as auto and also battery manufacturers seek to control battery material supply and reduce reliance on China. In the USA and Europe, incentives for recycled and critical battery materials such as lithium, nickel, cobalt and manganese are increasing.
Redwood Materials and Ultium Cells collaborated
Redwood Materials, a battery recycling initiative founded by Tesla’s former co-founder JB Straubel, will recycle production scrap from batteries used in General Motors’ electric vehicles. The company has collaborated with Ultium Cells, a joint battery manufacturing venture between GM and LG Energy Solution.
Redwood Materials received a $2 billion loan for its facility investment
With the law signed by President Joe Biden in August 2022, tax credits can be provided for battery production and processing critical minerals. Redwood received a $2 billion loan from the Department of Energy for its battery recycling facility investment in Nevada. Thus, the company directly benefited from this bill signed by Biden. The US Department of Energy also gave Ultium Cells a $2.5 billion loan to develop cell production facilities in the US.
Redwood, which also has agreements with Toyota and Panasonic (which produces batteries for Tesla), has become a well-known brand in the recycling of electric vehicle batteries. A Redwood Materials Spokesperson said the average battery factory produces 5 percent to 10 percent scrap; This means Redwood manages approximately 10,000 tonnes of material per year.