Battery recycling specialist Redwood Materials has just landed another major automaker as a client, signing a partnership with BMW of North America. Redwood will help to recover and recycle the end of lithium-ion cells and their rare materials from BMW Group marques such as MINI and Rolls-Royce.
The latest partnership announcement only serves to solidify Redwood Materials' current position as an industry leader in battery recycling. The company, founded in 2017 by Tesla co-founder and former CTO JB Straubel, has found rapid success in creating a circular economy around lithium-ion batteries and their precious materials, such as cobalt, copper, lithium, and nickel.
In the past few years in particular, Redwood has won the business of several major OEMs, including Ford, Volkswagen Group, and Volvo. In turn, Redwood has recycled those product batteries and resold its materials and components to companies like Panasonic and Toyota to breathe new life into EVs.
The company is very good at what it does, too. By 2023, it was projecting 95% efficiency in a battery recycling pilot, which helped it secure a large government loan to build renewable EV batteries and a large company valuation (over $5 billion as of September 2023).
As Redwood Materials continues to expand its battery recycling operations on two continents, it continues to add customers to its Rolodex, which now includes BMW.
Redwood will provide battery recycling for BMW and MINI in the US
BMW of North America shared details of its new partnership with Redwood Materials today, which includes battery recycling of lithium-ion cells from electric, plug-in, and mild hybrid vehicles from BMW Group's US flagships, including -MINI, Rolls-Royce, and BMW Motorrad.
BMW says Redwood will now work directly with the automaker's network of nearly 700 locations across the US, including dealerships, distribution centers, and other services. A battery recycling specialist will help restore end-of-life BMW lithium-ion cells and take them to their facilities in Reno, Nevada, where they can do what they do best – recycle and refine their valuable minerals. Redwood's chief commercial officer, Cal Lankton, spoke about the new relationship with BMW:
The transition to electric mobility offers a great opportunity to rethink how we manage the batteries that power our clean energy future. Our partnership with BMW of North America ensures responsible battery management at the end of life that will improve the environment for lithium-ion batteries, help lower costs and, in turn, increase access and adoption of electric vehicles.
As mentioned above, Redwood promises that 95% to 98% of recycled precious minerals will be returned to the battery supply chain and incorporated into new EV models. Battery recycling is a critical but emerging industry in EV acquisition and sustainability, as the current materials inside EV batteries are virtually infinitely recyclable and do not waste throughout their lifetime.
Redwood recycling processes are also a better option than anyone else today as they have much less impact on the environment than traditional mining or other recycling technologies. Redwood claims that its recycling and refining of said materials reduces energy by 80%, CO2 emissions by 70%, and water by 80%.
As we previously reported, Redwood is in the process of building a new battery recycling campus in Charleston, South Carolina, near the BMW Group's Spartanburg and Woodruff manufacturing plants.
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