Ford and Redwood Materials Partner for EV Battery Recycling

Ford and Redwood Materials Forge a Battery Recycling Partnership

Ford Motor Company has established a collaborative relationship with Redwood Materials to implement a closed-loop system for its expanding range of electric vehicles. This initiative encompasses the recycling of both production scrap and end-of-life EVs, alongside the provision of essential raw battery materials to the automaker.

Expanding EV Portfolio Drives Demand

This agreement arrives as Ford broadens its electric vehicle lineup, featuring models like the Mustang Mach-E, released last year, and the forthcoming F-150 Lightning pickup truck. The automotive sector is actively seeking partnerships with cell manufacturers and companies such as Redwood Materials to ensure a consistent supply of batteries, or the necessary components for their production.

Significant Battery Capacity Requirements

Ford anticipates substantial battery supply needs. The company’s global strategy for battery electric vehicles necessitates a minimum of 240 gigawatt hours (GWh) of battery cell capacity by 2030. This equates to approximately the output of ten large-scale production facilities.

Previously, Ford indicated that 140 GWh would be allocated to North America, with the remaining capacity serving regions including Europe and China.

Cost Reduction and Sustainability Goals

“Reintegrating materials from end-of-life products back into the supply chain will contribute to cost reductions,” stated Lisa Drake, Ford’s North American chief operating officer, during a press conference. “It will also lessen our dependence on importing materials currently used in battery construction, and minimize the need for raw material mining – a factor of increasing importance as we scale production.”

Drake emphasized that these efforts will ultimately result in more affordable and environmentally sustainable electric vehicles.

Redwood Materials’ Recycling Capabilities

Redwood Materials specializes in recycling materials from battery cell manufacturing and consumer electronics, including cell phones, laptops, power tools, and electric bikes. Founded by former Tesla CTO JB Straubel, the company claims to recover over 95% of valuable elements like nickel, cobalt, lithium, and copper.

Redwood processes these recovered materials, extracting key components traditionally sourced through mining, and then supplies them back to customers. Current clients include Panasonic at Tesla’s Gigafactory Nevada and Envision AESC’s Tennessee battery plant.

Strategic Partnerships and Supply Chain Security

Redwood has also formed a partnership with Amazon to recycle EV and other lithium-ion batteries, as well as e-waste generated by their operations. Earlier this year, Redwood secured its first automotive partnership with Proterra, an electric commercial vehicle manufacturer.

Supply chain vulnerabilities are a key concern. “Without proactive planning and strategic capacity building in the right regions and at the appropriate time, we risk facing a situation akin to the current global semiconductor shortage,” cautioned Straubel.

Implementation of the Ford-Redwood Collaboration

The newly announced partnership will initially focus on establishing recycling processes within Ford’s battery production network. Recovered materials will then be channeled back to Ford for use in new battery production. This will likely involve collaboration with Ford’s battery cell supplier, SK.

In May, Ford and SK formalized an agreement to create BlueOvalSK, a joint venture aiming to produce around 60 GWh of traction battery cells and array modules annually, starting in the mid-2020s.

A Full Lifecycle Approach

The overarching goal of the Ford-Redwood partnership is to encompass the entire battery lifecycle – from recycling production scrap and supplying materials to Ford, to providing recycling solutions for end-of-life vehicles. Managing the latter aspect presents challenges, as Ford will not retain ownership of many EVs throughout their lifespan.

Recent Investments and Expansion Plans

Redwood Materials has recently secured over $775 million in funding, including a $50 million investment from Ford. In September, the company announced plans to expand its operations beyond battery recycling into the production of critical battery materials at a new, one-million-square-foot facility in the United States.

Redwood intends to manufacture cathodes and anode foils, essential components of lithium-ion battery structures.

The company is currently evaluating locations for the new factory, which is expected to focus on cathode production. Redwood aims to achieve a capacity of 100 GWh for cathode material production by 2025, sufficient for one million electric vehicles.