Redwood Supplies, the battery recycling firm based by a former Tesla government, introduced right now that it’s going to construct a large $3.5 billion facility in South Carolina.
Redwood Supplies publicizes $3.5 billion EV battery recycling plant in South Carolina
The 600-acre plant, which might be positioned simply outdoors Charleston “within the coronary heart of the ‘Battery Belt,’” will make use of roughly 1,500 individuals over 10 years and can produce 100 GWh of cathode and anode elements yearly, Redwood stated. Floor might be damaged on the brand new manufacturing unit within the first quarter of 2023, with an eye fixed towards initiating the primary recycling course of by the tip of the 12 months.
These elements aren’t presently manufactured in North America, forcing automakers to supply a lot of the supplies wanted for electrical automobile batteries from abroad. That has had the impact of making a 50,000-mile provide chain at a value of $150 billion by 2030, the corporate notes.
These elements aren’t presently manufactured in North America, forcing automakers to supply a lot of the supplies wanted for electrical automobile batteries from abroad
Redwood claims that by recycling EV batteries domestically, it will probably assist drive down emissions and cut back international insecurity, with an eye fixed towards reuse and restoration. The corporate says its operations might be “100% electrical and we gained’t use any fossil gas in our processes (we won’t even pull a gasoline line to the positioning).”
Redwood additionally claims it will probably cut back CO2 emissions of EV battery supplies by “about 80% in comparison with the present Asia-based provide chain that we’re depending on for these essential supplies.”
Redwood chosen South Carolina after the state permitted a minimum of $225 million in taxpayer-funded debt for the corporate in what’s doubtless the largest economic development deal within the state’s historical past.
Redwood Supplies was based in 2017 by Jeffrey “JB” Straubel, a former chief know-how officer of Tesla. Along with breaking down scrap from Tesla’s battery-making course of with Panasonic, Redwood additionally recycles EV batteries from Ford, Toyota, Nissan, Specialized, Amazon, Lyft, and others.
Lots of the batteries from these first-wave electrical automobiles, just like the Nissan Leaf, are simply now reaching their finish of lifespan and are in want of recycling. After receiving batteries from its varied companions, Redwood begins a chemical recycling course of, through which it strips out and refines the related parts like nickel, cobalt, and copper. A sure share of that refined materials can then be reintegrated into the battery-making course of.
Lots of the batteries from these first-wave electrical automobiles, just like the Nissan Leaf, are simply now reaching their finish of lifespan and are in want of recycling
Redwood’s new manufacturing unit is the newest in a string of recent amenities, lots of that are positioned within the Midwest and South. Localizing battery manufacturing within the US is essential for automakers that need to qualify for the $7,500-per-vehicle tax credit, which requires EVs to be assembled within the US. Overseas automakers have expressed concerns that the brand new tax credit may discriminate towards corporations with out US-based manufacturing amenities — however they’ve additionally begun to make strikes to localize manufacturing within the US.
Ford has said its three new battery plants will allow 129GWh a 12 months of manufacturing capability. General Motors is planning 4 new battery factories within the US with LG Chem for a complete annual capability of 140GWh, whereas Volkswagen is aiming to have six battery cell manufacturing vegetation working in Europe by 2030 for a complete of 240GWh a 12 months. Stellantis is planning a new factory in Indiana, which could have an preliminary annual manufacturing capability of 23GWh. BMW, Hyundai and Honda have additionally introduced US-based manufacturing unit plans.
Globally, battery manufacturing is anticipated to develop from 95.3GWh in 2020 to 410.5GWh in 2024, in response to GlobalData, an information and analytics firm. However raw material prices are also increasing, which may complicate the transition to electrical automobiles.