Electric-Car Battery Recycling Kicks Off in California

(Bloomberg) -- Redwood Materials Inc., the startup founded by former Tesla Inc. Chief Technical Officer J.B. Straubel, is launching its battery-recycling efforts in California. Ford Motor Co. and Volvo Group are the first automakers to join the program.

California has led the transition to electric vehicles in the U.S. with plans to end the sales of new cars and trucks powered by gasoline or diesel by 2035. Last year, battery-electric and plug-in hybrids accounted for more than 12% of all light-duty vehicles sold in the state. As those cars age and are retired, Redwood will extract key metals such as lithium, cobalt, nickel and copper so they can be used in new battery packs and drive down the costs for the industry.

Redwood said its goal is to create a “sustainable closed-loop system” that will allow end-of-life battery packs to return to the U.S. supply chain. The company is working with state agencies, including the California Environmental Protection Agency, to look at how efforts can be further streamlined.

“We’re jumping in with California and launching this recycling program,” Straubel said at a press conference on Thursday. “California is the oldest EV market, and batteries are already coming back.”

Redwood formed a partnership with Ford in September, and Ford invested $50 million in the company, which is based in Carson City, Nevada.

“This new program with Redwood Materials will help Ford lead America’s transition to sustainable and carbon-neutral EV manufacturing and ultimately help make electric vehicles more sustainable and affordable for our customers,” Ford Chief Executive Officer Jim Farley said in a statement.

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