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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.
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Tesla rolls out most aggressive Model Y lease deal in the US yet
With the promotion in place, customers would be able to take home a Model Y at a very low cost.
Tesla has rolled out what could very well be its most aggressive promotion for Model Y leases in the United States yet. With the promotion in place, customers would be able to take home a Model Y at a very low cost.
Zero downpayment leases
The new Model Y lease promotion was initially reported on X, with industry watcher Sawyer Merritt stating that while the vehicles’ monthly payments are still similar to before, the cars can now be ordered with a $0 downpayment.
Tesla community members noted that this promotion would cut the full payment cost of Model Y leases by several thousand dollars, though prices were still a bit better when the $7,500 federal tax credit was still in effect. Despite this, a $0 downpayment would likely be appreciated by customers, as it lowers the entry point to the Tesla ecosystem by a notable margin.
Premium freebies included
Apart from a $0 downpayment, customers of Model Y leases are also provided one free upgrade for their vehicles. These upgrades could be premium paint, such as Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver or Ultra Red, or 20″ Helix 2.0 Wheels. Customers could also opt for a White Interior or a Tow Hitch free of charge.
A look at Tesla’s Model Y order page shows that the promotion is available for all the Model Y Premium Rear-Wheel Drive and the Model Y Premium All-Wheel Drive. The Model Y Standard and the Model Y Performance are not eligible for the $0 downpayment or free premium upgrade promotion as of writing.
@teslarati 🚨 Tesla Full Self-Driving v14.1.7 is here and here’s some things it did extremely well! #tesla #teslafsd #fullselfdriving ♬ You Have It – Marscott
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Tesla is looking to phase out China-made parts at US factories: report
Tesla has reportedly swapped out several China-made components already, aiming to complete the transition within the next two years.
Tesla has reportedly started directing its suppliers to eliminate China-made components from vehicles built in the United States. This would make Tesla’s US-produced vehicles even more American-made.
The update was initially reported by The Wall Street Journal.
Accelerating North American sourcing
As per the WSJ report, the shift reportedly came amidst escalating tariff uncertainties between Washington and Beijing. Citing people reportedly familiar with the matter, the publication claimed that Tesla has already swapped out several China-made components, aiming to complete the transition within the next two years. The publication also claimed that Tesla has been reducing its reliance on China-based suppliers since the pandemic disrupted supply chains.
The company has quietly increased North American sourcing over the past two years as tariff concerns have intensified. If accurate, Tesla would likely end up with vehicles that are even more locally sourced than they are today. It would remain to be seen, however, if a change in suppliers for its US-made vehicles would result in price adjustments for cars like the Model 3 and Model Y.
Industry-wide reassessments
Tesla is not alone in reevaluating its dependence on China. Auto executives across the automotive industry have been in rapid-response mode amid shifting trade policies, chip supply anxiety, and concerns over rare-earth materials. Fluctuating tariffs between the United States and China during President Donald Trump’s current term have made pricing strategies quite unpredictable as well, as noted in a Reuters report.
General Motors this week issued a similar directive to thousands of suppliers, instructing them to remove China-origin components from their supply chains. The same is true for Stellantis, which also announced earlier this year that it was implementing several strategies to avoid tariffs that were placed by the Trump administration.
@teslarati 🚨 Tesla Full Self-Driving v14.1.7 is here and here’s some things it did extremely well! #tesla #teslafsd #fullselfdriving ♬ You Have It – Marscott
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Tesla owners propose interesting theory about Apple CarPlay and EV tax credit
“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.
Tesla is reportedly bracing for the integration of Apple’s well-known iOS automotive platform, CarPlay, into its vehicles after the company had avoided it for years.
However, now that it’s here, owners are more than clear that they do not want it, and they have their theories about why it’s on its way. Some believe it might have to do with the EV tax credit, or rather, the loss of it.
Owners are more interested in why Tesla is doing this now, especially considering that so many have been outspoken about the fact that they would not use it in favor of the company’s user interface (UI), which is extremely well done.
After Bloomberg reported that Tesla was working on Apple CarPlay integration, the reactions immediately started pouring in. From my perspective, having used both Apple CarPlay in two previous vehicles and going to Tesla’s in-house UI in my Model Y, both platforms definitely have their advantages.
However, Tesla’s UI just works with its vehicles, as it is intuitive and well-engineered for its cars specifically. Apple CarPlay was always good, but it was buggy at times, which could be attributed to the vehicle and not the software, and not as user-friendly, but that is subjective.
Nevertheless, upon the release of Bloomberg’s report, people immediately challenged the need for it:
Everyone thinks they need it. I would think that too if I didn’t know how good Tesla’s interface was. CarPlay is a crappy layer on top of crappy info-navs, and people think it’s an imperative because it provides a level of consistency from car to car. They have no clue how much…
— Rich Stafford (@r26174_rich) November 14, 2025
How can it not be when the best engineers choose Tesla over Apple and Tesla’s core focus is auto vs Apple being mobile. It’s what Tesla does every day. It’s a side project for Apple. Still Apple is much better than any other auto OEM who attract lesser talent and make digital…
— Emu (@confessedemu) November 14, 2025
Some fans proposed an interesting point: What if Tesla is using CarPlay as a counter to losing the $7,500 EV tax credit? Perhaps it is an interesting way to attract customers who have not owned a Tesla before but are more interested in having a vehicle equipped with CarPlay?
“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.
Tesla has made a handful of moves to attract people to its cars after losing the tax credit. This could be a small but potentially mighty strategy that will pull some carbuyers to Tesla, especially now that the Apple CarPlay box is checked.
@teslarati :rotating_light: This is why you need to use off-peak rates at Tesla Superchargers! #tesla #evcharging #fyp ♬ Blue Moon – Muspace Lofi
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