Toyota Motor has entered into a long-term agreement with Redwood Materials for the supply of recycled materials to its upcoming $13.9 billion electric vehicle (EV) battery plant in North Carolina, according to a statement released by Redwood. The Nevada-based materials specialist will remanufacture EV battery components sourced from Toyota and recycled from end-of-life vehicles, focusing on hybrid-electric models such as the Prius. The specific terms of the agreement have not been disclosed.
Redwood, a prominent player in battery recycling, aims to meet the growing requirements of Toyota’s plant expansion and potential future facilities, as highlighted by Redwood’s Chief Executive J.B. Straubel. Straubel, who co-founded Tesla, envisions a closed-loop battery ecosystem that reduces EV costs by minimizing reliance on imported materials while minimizing environmental impact. Redwood plans to achieve an annual battery component production capacity of 100 gigawatt-hours in the U.S., enough to supply over 1 million EVs per year. The company’s capacity could potentially increase to 500 GWh.
Under Straubel’s leadership, Redwood will initially dispatch battery components to Toyota from its Sparks, Nevada facility. Future supply is expected to come from a $3.5 billion facility currently under construction near Charleston, South Carolina.
Redwood will provide Toyota with remanufactured cathode active material derived from recycled lithium, nickel, and cobalt, as well as anode foil made from recycled copper. These components, which contribute significantly to the cost of lithium-ion cells, will enable Toyota to enhance its sustainable approach to EV battery production.
Several companies are strategically announcing plans to manufacture battery components in North America to take advantage of incentives provided by the U.S. Inflation Reduction Act and related legislation aimed at reducing battery and material imports from China.
Q: What is the purpose of the partnership between Toyota and Redwood Materials?
A: The partnership aims to supply Toyota’s North Carolina EV battery plant with recycled materials for battery production.
Q: What type of vehicles will be used as a source for the recycled materials?
A: The majority of the recycled materials will come from end-of-life hybrid-electric vehicles like the Prius.
Q: What is Redwood Materials’ goal in terms of battery component production capacity?
A: Redwood aims to achieve an annual production capacity of 100 gigawatt-hours, enough to supply over 1 million EVs per year, with potential to increase capacity to 500 GWh.
Q: Which recycled components will Redwood provide to Toyota?
A: Redwood will supply Toyota with remanufactured cathode active material made from recycled lithium, nickel, and cobalt, as well as anode foil made from recycled copper.
Q: Why are companies announcing plans to manufacture battery components in North America?
A: They aim to capitalize on incentives provided by the U.S. Inflation Reduction Act and related legislation aimed at reducing battery and material imports from China.