To sustain the momentum of electric vehicles (EVs) and shift away from America’s long-standing dependence on oil, an increase in battery materials supply is essential. Alongside the need for more resources, addressing the disposal of aging EV batteries is crucial to prevent them from overwhelming landfills.
Recycling these batteries is vital for managing waste and meeting the surging demand for battery materials. Redwood Materials is leading the charge in this evolving sector, marking a major milestone with the commencement of its Cathode Active Material (CAM) building at its Nevada facility.
Cathodes, integral to battery functionality, form the negative electrode and play a crucial role in the battery’s composition. In lithium-ion batteries, lithium ions migrate between the cathode and anode through an electrolyte, which separates the two electrodes to prevent short circuits.
The cathode, rich in essential and often scarce metals like lithium, cobalt, and nickel, defines the battery’s makeup. These materials are not only expensive but also pose ethical and environmental challenges. For instance, cobalt mining in the Democratic Republic of the Congo is plagued by human rights issues, while nickel extraction in Indonesia seriously impacts the local environment.
Redwood Materials aims to mitigate these problems by establishing a domestic, conflict-free source for cathode materials, thereby reducing global shipping costs and environmental impacts. Their goal is to produce cathodes comprised of 30% recycled nickel, 30% recycled lithium, and 100% recycled cobalt. Their current focus involves disassembling old batteries to recover raw materials, which are then refined into valuable components for new batteries.
With the new CAM facility, Redwood Materials will supply essential components for battery production. Contracts have been secured with Panasonic and Toyota, who will use these materials in their upcoming American battery factories, set to begin operations in 2025.
The initial phase of Redwood’s facility will produce 20 gigawatt-hours of cathode materials annually, with a total projected output of 100 GWh from all four planned buildings, enough to power 1.3 million EVs. Deliveries to Panasonic will start by the end of next year, followed by Toyota.