Big Idea:

Redwood Materials will supply Toyota with recycled cathode material and anode copper foil for battery cells. They will be produced in Toyota’s future $13.9 billion EV Battery factory in North Carolina scheduled for production in 2025.

Why It Matters:

This strategic partnership is important because now Toyota will have a US source for critical components for their EV batteries. This is also an extension of Redwood Materials agreement with the automaker in June 2022. Redwood, founded by former Tesla CTO JB Straubel, committed to the refurbishment or recycling of batteries from Toyota's hybrid and electric vehicles. In cases where batteries cannot undergo refurbishment, Redwood extracts essential materials like copper, lithium, cobalt, and nickel. These materials are then reprocessed into components, which are subsequently supplied back to Toyota for cell manufacturing.

Key Details:

• Toyota was long perceived as slow in fully embracing battery EVs in their lineup. Despite recent acceleration in their EV program, they stand by their strategy to manufacture and market a combination of hybrid, plug-in hybrid, and battery EVs.
• The North Carolina Battery Plant has six production lines and will wean Toyota off their dependence on overseas supply chains.
• Redwood’s recycling technology turns battery waste into reusable components.
• Redwood is set to supply Toyota with at least 20% recycled nickel and lithium, 50% recycled cobalt, and 100% recycled copper for battery cell production.

“Accelerating our recycling efforts and domestic component procurement gets us closer to our ultimate goal of creating a closed-loop battery ecosystem that will become increasingly important as we add more vehicles with batteries to roads across North America,” said Christopher Yang, Group Vice President, Business Development, Toyota Motor North America.

What's Next:

Toyota’s ramped-up investment and Redwood partnership could inspire more battery recycling startups to partner with EV makers, encouraging a sustainable and cyclical life for used batteries. 

Dive Deeper:

Redwood's expansion in Nevada and South Carolina signifies an increased capacity for upcycling battery material production, aiming to meet the demands of a million EVs annually by 2025.

By the Numbers

• Nearly five million Toyota electrified vehicles in operation that can be potentially recycled.
• 100 GWh annual production target by Redwood, sufficient for 1 million EVs.
• 5,000+ jobs to be created at the North Carolina plant.

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