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Former Tesla CTO’s battery recycling startup secures funding from Amazon
Redwood Materials, the battery recycling startup founded by former Tesla CTO JB Straubel, recently secured some funding from Amazon as part of the e-commerce giant’s efforts to reduce its emissions. Redwood is one of five companies that Amazon is investing in as part of its Climate Pledge Fund, which was announced last year and expected to cost about $2 billion.
In a statement about the five companies that received funding, Amazon CEO Jeff Bezos stated that firms like Redwood are “channeling their entrepreneurial energy into helping Amazon and other companies reach net zero by 2040 and keep the planet safer for future generations.” Amazon, for its part, appears to be interested in Redwood’s recycling technology, which could allow materials like lithium, cobalt, and nickel to be extracted from old smartphones and other consumer devices.
Redwood was founded by the former Tesla CTO in 2017 after seeing that the global shift to electric vehicles will likely cause unnecessary environmental damage from a surge in mining. Such a scenario would only happen, however, if there is no recycling system in place that would allow EV producers to reuse the materials that have already been used in their cars’ batteries. Speaking with the Financial Times, Straubel shared his vision for the transportation sector, which involves the mass adoption of EVs and a closed-loop battery recycling system.
“(My vision is a) world where all of the transportation is done by electric vehicles and we have batteries powering a sustainable world. And all of those batteries are able to be recycled and remanufactured many, many times so that we can have a nearly closed-loop,” Straubel said.
This same concept stands just as true in the consumer electronics sector, according to the former Tesla CTO. Straubel remarked that while batteries are bound to degrade with repeated use, the underlying elements that comprise them remain sealed from the environment. This meant that the batteries’ materials, most of which are very valuable, could be broken down and repurposed once more. If this is accomplished, the former Tesla executive believes that mining would not be as necessary anymore.
“There are a phenomenal amount of cell phones in the world that currently are being discarded as trash or thrown into a landfill. It’s a massive, untapped resource. If we can recover 98 or 99% of those materials and reuse them, we don’t need very much new material to keep that whole process running… Even though the battery is internally degraded, all of the same materials are still in there — all of the same atoms of lithium, nickel, and cobalt. You can still harness all of those same materials, but they need to be reprocessed and brought back to a state where they could be used again and built into a new battery,” Straubel remarked.
The exact amount of funding that Redwood Materials has acquired from Amazon has not been disclosed by either company, through the former Tesla executive noted that there was a potential for “partnership on a number of different levels” between the recycling startup and the e-commerce giant. One of these levels may include aiding Amazon in building and developing an end-of-life process for consumer electronics that are sold through its e-commerce platform so that the devices and their components could be reused.
Redwood Materials has remained mostly in stealth mode since its founding, though signs have emerged that the company may be part of Tesla’s efforts to develop its own battery recycling processes. One of these involves an existing partnership with Panasonic to reclaim the scrap that is generated from the battery cells currently produced at Tesla’s Gigafactory Nevada facility. Reports have indicated that Panasonic initially started a trial run with Redwood to reclaim more than 400 pounds of scrap from Giga Nevada, and the results were so successful that the Japanese firm raised its contract to 2 tons not long after.
A common misconception of anti-EV proponents is that the batteries used in the vehicles are detrimental to the environment and that they cause more waste than they are worth. But a look at Tesla’s battery recycling efforts last year shows the company is doing more than ever to recover materials and give portions of the cells a second life.
Tesla reported a significant milestone in its sustainability efforts last year, with battery recycling volumes rising 20% compared to 2024. According to the company’s 2025 Impact Report, Tesla recycled over 14,000 metric tons of battery material through a combination of in-house processing at its Gigafactories and collaborations with third-party recycling partners.
Tesla: “In 2025, we recycled over 14,000 metric tons of battery material through a combination of in-house processing and through our network of recycling partners.”
That’s equivalent to 46,000 long-range battery packs, a +20% increase from 2024. pic.twitter.com/TC3Nz7Kaqf
— Sawyer Merritt (@SawyerMerritt) July 7, 2026
This amount of recovered material is equivalent to the resources needed to produce approximately 46,000 long-range battery packs. The increase reflects growing operational scale as Tesla’s global vehicle fleet expands and more batteries reach end-of-life or manufacturing scrap becomes available for processing.
Tesla and Battery Recycling
Battery recycling forms a core part of Tesla’s circular economy strategy. The company designs its batteries for longevity, often exceeding 200,000 miles of driving, and prioritizes repairs, remanufacturing, and second-life applications before full recycling.
Once packs are decommissioned, Tesla ensures 100% are recycled with no materials sent to landfills. This approach recovers critical metals including lithium, nickel, cobalt, and copper, which can be refined and reused in new battery production.
Tesla has advanced hydrometallurgical recycling processes capable of achieving recovery rates up to 98% for key battery metals. These methods are more efficient and environmentally friendly than traditional pyrometallurgical techniques, reducing energy use and enabling higher-purity materials suitable for direct reintegration into battery manufacturing.
Tesla co-founder JB Straubel confirms Redwood’s battery recycling operations are already profitable
In-house capabilities are supplemented by a network of specialized partners, creating a robust system that handles both production scrap and end-of-life packs.
The environmental and economic benefits are substantial. Recycling reduces reliance on virgin mining, lowers the carbon footprint associated with raw material extraction and processing, and helps stabilize supply chains for critical minerals amid rising global EV demand. As millions of Tesla vehicles age, the volume of recyclable material is expected to grow significantly in the coming years.
This 20% year-over-year growth demonstrates the effectiveness of Tesla’s investments in recycling infrastructure and technology. It positions the company as a leader in addressing one of the automotive industry’s major sustainability challenges. Continued innovation in battery design for easier disassembly and higher recyclability will further enhance these efforts.
Overall, Tesla’s progress in 2025 highlights how scaling recycling operations supports both environmental goals and long-term business resilience in the transition to electric mobility. As the EV market matures, such closed-loop systems will become increasingly vital for sustainable growth.
Tesla has spent years trying to engineer its way out of the automotive paint shop, one of the most expensive, space-consuming, and environmentally costly steps in vehicle manufacturing. With the Cybercab, Tesla confirmed on X this week that a new reaction injection molding process will embed color directly into the panel itself during production.
“Our new reaction injection molding (RIM) process shrinks Cybercab paint cycles from hours to minutes. This cuts those parts’ manufacturing and supply chain emissions by 35% and eliminating 100% of paint volatile organic compounds (VOCs) emitted in traditional paint methods.” noted Tesla.
While the RIM process isn’t necessarily new and has existed since the 1960s, what makes Tesla’s application notable is how it is being used specifically for exterior body panels that traditionally required a separate paint process after forming.
Tesla’s RIM approach integrates the color directly into the panel material during the molding process itself. The pigment is part of the polymer mix injected into the mold, meaning the panel comes out of the mold already colored, with no separate paint application required. The clear coat or protective layer can be applied at the mold stage or through a much faster post-process than traditional multi-stage painting. Tesla claims this compresses what was a multi-hour paint cycle into minutes per panel.
Tesla’s obsession with killing the paint shop is one of the most consistent threads running through the company’s manufacturing philosophy going back years. As far back as 2018, Musk was trimming paint color options to simplify production, tweeting at the time: “Moving 2 of 7 Tesla colors off menu on Wednesday to simplify manufacturing.” Two years later, in a 2020 Automotive News interview, Musk laid out his broader vision, saying he believed Tesla factories could one day be 1,000 times more efficient than conventional plants, and pointing to the paint shop as one of the biggest sources of waste, cost, and complexity. The Cybertruck was the most extreme expression of that thinking. Tesla chose an unpainted stainless steel exterior partly because it would eliminate the need for a $200 million paint facility at Gigafactory Texas. The stainless approach proved harder and more expensive than anticipated, but the underlying ambition never changed. The Cybercab is what happens when that same ambition meets a manufacturing process that delivers on it.
Lifestyle
Tesla app update makes Robotaxi ownership make a lot more sense
Tesla’s app now shows a live indicator when your car is actively driving itself.
A recent Tesla app update, released last week (4.58.5), gives visibility on whether a vehicle is navigating in its semi-autonomous mode or being drive by a human driver. The updated app now displays a live “Self-Driving” indicator in bright blue text directly beneath the vehicle’s speed readout whenever Full Self-Driving is actively engaged, along with the signature glowing blue navigation path that FSD users see on the main touchscreen. It is a small visual update with meaningful implications for how Tesla owners monitor their vehicles remotely.
The feature was first spotted in the wild by X user Jordan Camina, who shared video of a Hardware 3 Model S displaying the new animation through the app while driving. That detail is significant because it confirms the update is not limited to newer HW4 vehicles. It works across hardware generations, and Tesla confirmed it will eventually support all vehicles regardless of chip platform once both the app and vehicle software are updated. The vehicle side requires software version 2026.20.6.1, which has reached nearly 40% of the fleet so far, as monitored by NotaTeslaApp.
The feature makes the most practical sense when viewed through the lens of Tesla’s expanding robotaxi operation. In a robotaxi context, the owner of a vehicle generating ride revenue has a direct financial and safety interest in knowing whether their car is operating under autonomous control at any given moment. The app’s new FSD indicator gives fleet owners exactly that visibility, the same way a logistics company monitors whether a delivery driver is following the planned route. It also carries implications for Tesla’s insurance model. Tesla’s own insurance product prices premiums in part based on FSD engagement rates, and real-time visibility into when FSD is active creates a feedback loop that could eventually tie directly into policy pricing. For individual owners who have opted their personal vehicles into the robotaxi network, the update effectively turns the Tesla app into a fleet management dashboard, one that tells you whether your car is earning money, whether it is driving itself to do it, and whether everything is operating the way it should from wherever you happen to be.
Tesla expands Robotaxi to Florida, marking its third state for autonomy
As Teslarati has reported, Tesla launched unsupervised robotaxi rides in Miami this summer, a milestone that makes a remote FSD status indicator significantly more practical than a cosmetic feature. When a vehicle is operating as a robotaxi without a driver present, the owner or fleet operator needs a reliable way to confirm autonomy is engaged. The app now provides exactly that.
As noted by NotATeslaApp, The update also arrived alongside a hint buried in the same app version that Tesla plans to use the cabin camera to verify driver identity before FSD can be activated. Pairing identity verification with a live autonomy status indicator points toward the infrastructure Tesla is building for a fleet of driverless vehicles that owners can monitor the way you would track a package delivery.
Tesla battery recycling efforts increased 20 percent last year
Tesla FSD is about to know your specific house and neighborhood better than any map
