Ultium Cells, a joint venture division of LG Energy Solution and General Motors, has entered a strategic agreement with Redwood Materials that is based in Carson City, Nevada. This partnership is geared towards addressing the recycling issue of EV batteries and the recovery of critical elements including cathode and anode materials for lithium-ion batteries, and recycling of cell manufacturing scrap.
Redwood Materials was founded by JB Straubel, one of the co-founders of Tesla, as well as its former chief technology officer, which indicates the level of professionalism and creativity that the new venture possesses. The collaboration holds great potential for positive change in terms of battery recycling and reducing their prices, in turn making EVs cheaper.
Both Ultium Cells and Redwood Materials have reiterated their environmental responsibility in the EV industry. With an emphasis on proper recycling technologies and processes, both partners will strive not only to lower the impact on the environment but also to set an example for other industries by introducing advanced techniques into the automotive industry. This will be their first step towards creating circular economy that is both environmentally friendly and commercially profitable.
Ultium Cells has its two facilities located in an area of approximately 2.8 million-square-feet each. Combined, these operations are expected to produce over 80 gigawatt-hours (GWh) of battery cells per year. To improve sustainability and resource efficiency, most of scrap created during Ultium’s production will be sent to Redwood Materials for recycling. Currently in operation and fully on the path to 100% capacity, Ultium Cells’ Gigafactories in Ohio and Tennessee are already part of the supply chain. Also, the construction of the third plant in Michigan is in progress and once complete will expand the company’s production capacity as well as coverage area.
This latest joint venture is a major development for Redwood Materials as it establishes the company as a major player in battery recycling in North America. Having recently signed deals with most of the battery cell producers across the continent, Redwood is gradually establishing itself as a go-to recycler for the rapidly growing electric car sector.