Ford to form closed loop supply chain for electric vehicles

Sept 22 Reuters : Ford Motor Co and Redwood Materials company announced on Wednesday they were partnering to form a closed loop or circular supply chain for electric vehicle batteries, from raw materials to recycling.

The aim is to reduce the cost of EVs by reducing the dependence on imported materials while also reducing the environmental impact from mining and refining of battery materials.

Ford and Redwood will work closely with the Korean battery maker SK Innovation, which has a joint venture with Ford called BlueOvalSK to make EV battery cells in the United States, Ford executive Lisa Drake said at a media briefing.

Redwood, founded in 2017 by former Tesla Inc. executive J.B. Straubel, recycles battery scrap and materials at facilities in Nevada.

In mid-September, the company announced its decision to include refining those materials into battery components, including cathodes and anodes, with the aim of supplying enough of those components to equip a million electric vehicles after 2025.

In July, Redwood raised $700 million from investors, including Amazon.com Inc, Fidelity, T. Rowe Price and Baillie Gifford. On Wednesday, Ford said it invested $50 million; Straubel was fired. Redwood is currently valued by investor website PitchBook at $3.7 billion.

Redwood has partnerships with battery makers Amazon in Nevada and Panasonic in Tennessee, as well as Envision AESC in Nevada.

The concept of battery life-cycle management has taken on increasing importance in the plans both of vehicle and battery manufacturers.

At a press conference on Tuesday, General Motors Co President Mark Reuss said recycling and reuse of EV battery materials is a crucial issue for the auto industry as it ramps up production of electric vehicles.

It's a lot of material in a battery cell that can be reused, he said. GM and battery partner LG Energy Solution announced a partnership with startup Li-Cycle in May to recycle battery scrap material from Ultium Cells, the GM-LGES joint venture that is building battery plants in Ohio and Tennessee.

Straubel said Redwood plans to begin recycling some material in Ford this year, with the goal of supplying the first anode material in 2023 -- 2024 and the first cathode material at mid-decade.