Redwood Materials recently posted about its plans to localize battery production in North America, particularly in the United States.
In a post on X, Redwood Materials informed people that cathode material accounts for over 50% of a battery cell’s costs. The company highlighted that most cathode production facilities are located outside North America, and Redwood Materials aims to change that.
“We’re building a huge (Airbus A380 for scale) cathode plant with more than 1 million EVs/year of capacity at our Nevada Campus. We’re reducing both the construction cost and the build time through ambitious and detailed engineering, focusing on innovative practices in the plant’s very design and development,” announced Redwood Materials.
The battery recycling company is determined to strengthen supply chains in North America and reduce its reliance on battery components from foreign nations. Redwood Materials’ goals perfectly align with the Biden Administration’s goals.
Cathode accounts for >50% of a battery cell’s cost but today, manufacturing is based entirely outside of North America.— Redwood Materials (@RedwoodMat) January 23, 2024
Redwood is changing that!
We’re building a huge (Airbus A380 for scale) cathode plant with more than 1 million EVs/year of capacity at our Nevada Campus.… pic.twitter.com/0ZftvuR9Rd
In February 2023, Redwood Materials received a $2 billion conditional commitment from the United States Department of Energy (DOE). The billion-dollar loan would go toward the company’s expansion plans for its McCarran site in Nevada. The expansion would result in a recycling production facility that would process lithium-ion battery materials and support the production of anode copper foil and cathode materials.
Redwood Material’s McCarran site is located approximately 24 miles east of Sparks, Nevada, where Tesla and Panasonic’s gigafactory is situated. Interestingly enough, Tesla has expansion plans for Giga Nevada as well. In 2022, Panasonic signed a multi-billion dollar deal in which Redwood Materials agreed to supply the Japanese company with recycled battery cathode material starting in 2025.