Redwood Materials, an industry leader in battery recycling, has recently entered into a long-term contract with Toyota Motor. The contract will involve the supply of recycled materials to be used in Toyota’s $13.9 billion electric vehicle battery plant in North Carolina. Under this agreement, Redwood will repurpose EV battery components sourced from Toyota and recycled from end-of-life vehicles, primarily hybrid-electric models such as the popular Prius.
While the value and specific timeline of the contract have not been disclosed, Redwood CEO J.B. Straubel, who was previously a co-founder and director at Tesla, expressed enthusiasm about the partnership. Straubel sees this collaboration as an opportunity for Redwood’s business to expand and evolve alongside Toyota’s growing needs. He believes that Toyota’s plans for the North Carolina plant, as well as potential future expansions, will create long-term demand for Redwood’s recycled battery components.
Redwood aims to foster a closed-loop, or circular, battery ecosystem that contributes to reducing the environmental impact of EV production. By relying on recycled materials, the company hopes to lessen the industry’s dependence on imported resources, ultimately leading to cost savings for electric vehicle manufacturers. Redwood’s goal is to establish a U.S.-based battery component production capacity of 100 gigawatt-hours per year, enough to supply over 1 million electric vehicles annually. The company also has the potential to further expand its production capacity to 500 GWh per year.
In addition to supplying Toyota from its existing facility in Sparks, Nevada, Redwood is well underway with the construction of a $3.5 billion facility near Charleston, South Carolina. The company plans to transition its battery component supply operations to this new facility in the future.
Redwood Materials has been successful in securing partnerships with several key players in the automotive industry. Prior to the Toyota agreement, the company had already announced recycling deals with Panasonic, Volkswagen, and Ford, among others. Furthermore, Redwood currently supplies remanufactured battery components to Panasonic for their joint EV battery plant with Tesla in Nevada.
Frequently Asked Questions
1. What materials will Redwood supply to Toyota for their North Carolina battery plant?
Redwood Materials will supply Toyota with recycled EV battery components, sourced from Toyota and recycled from end-of-life vehicles, primarily hybrid-electric models.
2. What are the goals of Redwood Materials’ closed-loop battery ecosystem?
Redwood aims to reduce the environmental impact of EV battery production by creating a closed-loop battery ecosystem that relies on recycled materials. This strategy aims to reduce costs by decreasing import reliance.
3. What is the production capacity that Redwood plans to achieve in the U.S.?
Redwood plans to establish a production capacity of 100 gigawatt-hours per year in the U.S., enough to supply over 1 million electric vehicles annually. There is also potential for further expansion to 500 gigawatt-hours per year.
4. Which companies have Redwood Materials already partnered with?
Redwood has secured recycling deals with companies such as Panasonic, Volkswagen, and Ford. The company also supplies remanufactured battery components to Panasonic for their Nevada-based EV battery plant, operated jointly with Tesla.