BMW of North America has signed an agreement with Redwood Materials to recycle lithium-ion batteries from all of its electric vehicles, the companies announced today.
The German automaker said it would instruct its dealers to send old batteries from all of its electric models – including battery-electric, hybrid, mild hybrid and plug-in hybrid vehicles from brands such as BMW, Mini and Rolls-Royce – to Redwood for recycling.
Redwood, founded by Tesla co-founder and former chief technology officer JB Straubel, will process the used batteries at its two plants. One facility is in Reno, Nevada, and the other, still under construction, will be in Charleston, South Carolina – near BMW's Spartanburg and Woodruff plants. The automaker's battery cell manufacturer, AESC, is also based in Florence, South Carolina.
Redwood would not disclose which specific materials BMW recycles, but in previous contracts the company has processed cathode and anode material, which are key components of lithium-ion batteries. The company takes the materials and converts them into “high-value” battery materials that can then be sold back to its numerous partners to make new EV batteries. About 95-98 percent of these materials are ultimately recovered and returned to the supply chain, Redwood says.
Redwood praised BMW as a “pioneer of electrification,” pointing to the launch of the i3 electric hatchback in 2013. (BMW later stopped production of the i3.) The automaker has said it will produce at least six all-electric models in the U.S. by 2030. BMW currently has several electric models on offer in the U.S., including the i7, i4 and iX SUV.
Redwood Materials was founded by Straubel in 2017. In addition to dismantling scrap from BMW's battery manufacturing process, the company also recycles electric vehicle batteries from Tesla, Ford, General Motors, Toyota, Nissan, Specialized, Amazon, Lyft, Rad Power Bikes and others. Redwood also recycles stationary batteries, such as those at a substation in Hawaii.
Many of the batteries from these first-generation electric vehicles, such as the Nissan Leaf, Tesla Model S and BMW i3, are reaching the end of their life and need to be recycled. After Redwood receives batteries from its various partners, the company begins a chemical recycling process where it extracts and refines the relevant elements, such as nickel, cobalt and copper.