Panasonic to Utilize Redwood Materials for Battery Cell Production at Tesla Gigafactory

Panasonic and Redwood Materials Expand Battery Recycling Partnership

By the close of 2022, Panasonic battery cells, manufactured at the Gigafactory shared with Tesla, will incorporate a greater proportion of recycled materials. This advancement stems from a broadened collaboration with the innovative startup, Redwood Materials.

Recycled Copper Foil Supply

Panasonic revealed at the 2022 CES technology exhibition that Redwood Materials will commence supplying copper foil derived from recycled sources. This foil is a crucial element in the anode structure of a battery cell.

Production of the recycled copper foil is slated to begin in the first six months of the year. Subsequently, it will be delivered to Panasonic for integration into cell manufacturing before year-end.

Driving Sustainability Through Recycling

This development signifies Panasonic’s commitment to utilizing more recycled content. This, in turn, lessens its reliance on newly extracted raw materials. It also demonstrates the continued growth and impact of Redwood Materials’ business model.

Understanding Battery Components

Modern electric vehicles utilize lithium-ion batteries. These batteries consist of two electrodes: a negative anode and a positive cathode.

An electrolyte facilitates ion movement between these electrodes during both charging and discharging processes. Typically, the anode is constructed from copper foil coated with graphite.

Rising Demand for Battery Materials

As the production of electric vehicles accelerates, and ultimately replaces vehicles with internal combustion engines, the demand for batteries and their constituent materials is projected to increase dramatically.

Consequently, most major automotive manufacturers, committed to vehicle electrification, have established partnerships with battery cell manufacturers and suppliers to secure their supply chains.

Redwood Materials: A Circular Supply Chain

Founded in 2017 by former Tesla CTO JB Straubel, Redwood Materials aims to establish a closed-loop supply chain.

The company recovers materials from battery cell production scrap, as well as from consumer electronics like cell phones, laptops, power tools, power banks, scooters, and e-bikes.

These discarded items are processed to extract valuable materials – including cobalt, nickel, and lithium – which are typically obtained through mining. These reclaimed materials are then supplied to companies like Panasonic, Amazon, and AESC Envision.

The Goal of a Closed-Loop System

The ultimate objective is to create a self-contained system that reduces battery costs and minimizes the need for mining operations.

Redwood’s earlier acquisition of 100 acres near the Gigafactory foreshadowed this expanded partnership with Panasonic.

Statements from Leadership

“Our work together to establish a domestic circular supply chain for batteries is an important step in realizing the full opportunity that EVs have to shape a much more sustainable world,” stated Allan Swan, President of Panasonic Energy of North America, during the presentation.

Redwood’s Expansion Plans

In September, Redwood Materials announced plans to construct a $2 billion facility in the United States for producing critical battery materials.

This factory will have the capacity to produce cathode and anode foils, reaching a projected output of 100 gigawatt-hours annually – sufficient for approximately one million electric vehicles – by 2025.