Ford invests $50M in Redwood EV battery recycler to form ‘circular’ supply chain

Ford Motor Co and startup Redwood Supplies mentioned on Wednesday they are partnering to kind a “closed loop” or round source chain for electric car batteries, from raw products to recycling.

The intention is to lessen the expense of EVs by cutting down the dependence on imported materials, whilst also narrowing the environmental effects from mining and refining of battery products.

Ford and Redwood will function closely with Korean battery maker SK Innovation, which has a joint venture with Ford named BlueOvalSK to make EV battery cells in the United States, Ford govt Lisa Drake reported at a media briefing.

The problem

Redwood, which was established in 2017 by former Tesla Inc executive J.B. Straubel, has been recycling battery scrap and materials at facilities in Nevada.

In mid-September, the enterprise said it would extend its small business to involve refining those people resources into battery components, together with cathodes and anodes, with the intention of giving sufficient of those factors to equip a million electric powered motor vehicles following 2025.

In July, Redwood lifted $700 million from buyers, together with Inc, Fidelity, T. Rowe Rate and Baillie Gifford. On Wednesday, Straubel reported Ford had invested $50 million. Redwood at present is valued at $3.7 billion by investor web page PitchBook.

Redwood has partnerships with battery makers Panasonic in Nevada and Envision AESC in Tennessee, as nicely as Amazon.

The difficulty of battery life-cycle management has taken on increasing relevance in the options of both motor vehicle and battery suppliers.

General Motors Co President Mark Reuss, at a conference on Tuesday, claimed recycling and reuse of EV battery products is a very important problem for the auto sector as it ramps up generation of electric powered autos.

“There is a large amount of material in a battery mobile that can be reused,” he claimed. “We are paying out time on that.”

GM and battery companion LG Electrical power Answer in Might declared a partnership with startup Li-Cycle to recycle battery scrap materials from Ultium Cells, the GM-LGES joint venture that is building battery plants in Ohio and Tennessee.

Straubel reported Redwood aims to get started recycling some materials from Ford this 12 months, with the objective of giving the 1st anode materials in 2023-2024 and the very first cathode materials at mid-10 years.