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Ford sign deals with redwood materials to recycle EV batteries

Ford Has partnered with battery recycling startup Redwood Materials to reuse raw materials for EV battery packs.

The agreement, which initially begins with the recycling of scrap materials from battery manufacturing, is the latest sign that automakers are taking steps to address the supply and cost of the raw materials needed to manufacture batteries for electric vehicles. ..

“This reduces the reliance on imports for many of the materials currently used in the manufacture of batteries, and reduces the mining of raw materials that will be of great importance in the future. To scale up. ” “Building this domestic supply chain is a big step towards making electric vehicles more affordable and accessible to everyone.”

According to research firm LMC Automotive, EV sales in the U.S. are expected to rise from an estimated 350,000 units in 2021 to over 1 million units a year by 2025, putting automakers into the EV battery life cycle. I am paying more attention.

TeslaRecycles vehicle batteries, but states on its website that “all discarded lithium-ion batteries are not landfilled and are 100% recycled.” GM We work with Canada-based Li-Cycle to recycle scrap material from manufacturing. Ultium battery cell..

As the number of EVs continues to grow, Ford’s deal with Redwood Materials could benefit both companies. Ford and its battery manufacturing partner, SK Innovation, ensure a stable, potentially growing supply of key materials such as lithium, nickel and copper that are essential in the manufacture of EV battery packs. Redwood Materials receives recycled battery packs, key elements are returned to Ford for reuse in future EVs.

JB Straubel, Founder and CEO of Redwood Materials, said: “At the very least, we need to plan to understand how to recycle and disassemble the same number of batteries in a very efficient and sustainable way.”

Initially, Redwood will recycle scrap material received from Ford at a facility in Carson City, Nevada. Over time, as Ford and SK Innovation add factories, Redwood Materials may build a new recycling center near the battery manufacturing plant.

On paper, Ford’s battery recycling plan makes sense. But to make sure there’s a continuous loop, you need to track what’s happening to the EV long after Ford was sold. Vehicles are usually a daunting task as they have a couple of owners before they reach the end of their life. In that case, the EV could reach the scrap yard. The answer may be to require the car manufacturer to track the EV battery.

Sam Jaffe, Managing Director of Cairn Energy Research Advisors, said:

Jaffe, who tracks the EV battery market, says recycling is well established in Europe as automakers have a legal obligation to guarantee battery recycling. “Batteries arrive in the scrap yard, and automakers pick them up, bring them in, centralize them, and then send them for recycling,” he said. Promoting increased recycling in the EU is one of the reasons Volkswagen and Peugeot have developed small recycling businesses on the continent.

So far, Ford hasn’t established a clear plan to ensure that battery packs are recycled at the end of their life, but Drake acknowledges that the economic benefits of recycling batteries are great. “If we can regain that value, not have to mine again, and secure our domestic supply, it’s very valuable to us,” she said in a briefing announcing the partnership.

In the United States, the recycling of EV batteries has received little attention due to the relatively small number of electric vehicles that have reached the end of their lives. As the industry increases EV production, that will change over the next decade.

AlixPartners, a consulting firm in the automotive industry, says that investment in battery production accounts for almost a quarter of the $ 330 billion spent on the development and manufacture of electric vehicles from 2021 to 2025. .. F-150 Lightning. The first shipment of all electric pickup trucks is scheduled for early next year.

Ford is one of several companies that have invested in Redwood Materials, which has raised more than $ 800 million in three rounds of funding. Recycling, not mining, will be a wise move for automakers, as demand for raw materials will continue to grow, Straubell said.

“We can reduce the need to import these materials from abroad and reduce the need and pressure to increase mining,” he said.

— — CNBC Meghan Reeder Contributed to this report

Ford sign deals with redwood materials to recycle EV batteries

Source link Ford sign deals with redwood materials to recycle EV batteries

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