Redwood Materials, an electric vehicle (EV) battery recycling firm, broke ground early this year on its new South Carolina facility. The plant, located just outside Charleston, will recycle, refine, and produce anode and cathode components for EVs. Morgan Crapps, Redwood’s director of public affairs and government relations, confirmed the news in a LinkedIn post.
The battery plant represents a major investment in advancing clean energy technologies. It’s estimated to cost nearly $3.5 billion to complete. It’s part of America’s growing “Battery Belt,” a corridor stretching from Michigan to Georgia lined with new plants dedicated to the American Electric Revolution. It’s reviving the United States auto industry while setting up a carbon-neutral transportation system.
Tesla and Panasonic recognize the work Redwood is doing for EV battery reliability and recycling.
The facility is poised to become a key player in the circular economy by efficiently recycling and repurposing materials, thus reducing the industry’s reliance on newly mined resources.
The two companies have deals with Redwood to use recycled battery products. The joint venture gigafactory is one of the biggest recipients of Redwood-recycled battery components.
Photo Courtesy Redwood Materials
The factory plans were unveiled in December 2022. Construction was supposed to begin in the first quarter of 2023, but Redwood delayed it until early 2024. Once operational, the plant will run on 100% renewable energy.
Redwood estimates the plant will create more than 1,500 jobs and join a growing list of auto companies setting up operations in the Palmetto State. BMW and Michelin Tires have factories in upstate South Carolina near the North Carolina border.
Redwood has another facility in Nevada, only a few miles away from the Tesla-Panasonic gigafactory. The firm claims it can recycle batteries up to 95% without any loss of potency. Metals like lithium, cobalt, copper, and aluminum can be recycled multiple times and reused in production.
The company even encourages consumers to recycle their old electronics for lithium and other metals thanks to recycling programs with Audi and Volkswagen.
Redwood Materials says the Nevada plant can produce battery cathodes for up to 1 million EVs and runs on 100% renewable energy.
JB Straubel, founder of the company, set up shop in 2019 after serving as Tesla’s CTO. Now operating a novel EV tech firm, his company continues to make waves in critical mineral recycling.
Photo Courtesy Redwood Materials
One of the primary objectives of Redwood’s South Carolina plant is to establish a closed-loop system for battery materials, simultaneously stimulating the state economy. Between the construction of the plant and the resulting manufacturing roles, more jobs will likely follow.
As the world grapples with the urgency of addressing climate change, the Redwood battery plant embodies a shift toward more efficient business practices. Creating a circular economy of critical minerals will reduce reliance on foreign suppliers from China, Chile, Australia, and Argentina.
While more domestic supplies of lithium and cobalt are popping up, regulations and other hurdles still slow scaling up domestic mining. More sustainable supply chains will alleviate some of the sourcing problems EV producers face.
To quote directly from the South Carolina plant announcement, “When paired with the benefits of the recent Inflation Reduction Act, this strategic location also allows us the opportunity to invest more heavily at home while potentially exporting components in the future, allowing the U.S. to become a global leader in this manufacturing capability.”