Former Tesla co-founder JB Straubel’s battery recycling startup Redwood Materials announced recently that it had come to terms with Envision AESC for cell recycling efforts. After CNBC initially reported the partnership yesterday, Teslarati spoke to the battery recycling startup, indicating there are plenty of details that make the pairing ideal for the entire EV sector.
While Redwood’s most recent announcement sheds light on a partnership with AESC, it is not the only contributor to the batter recycling efforts that Straubel’s company is working on. With the conglomerate’s announcement, Redwood now works with the two largest battery manufacturing companies in North America. Along with AESC, Redwood is also working with Panasonic, Tesla’s supplier at its factory in Sparks, Nevada, known as the Tesla Gigafactory. While Envision AESC works out of Tennessee, Redwood has established two battery cell producers in separate regions of the United States, working on expanding its footprint of possible EV manufacturers who need assistance in responsibly disposing of their batteries.
Resuing battery materials will eliminate some criticism regarding mining, which can be hazardous to the environment. Ultimately, Redwood aims to give EV manufacturers the ability to reuse their materials, and it has gotten to the point that the difference between new and recycled materials is relatively “indistinguishable,” Straubel said.
However, Bill Williams, Envision AESC’s Director of Business Development, also chimed in on the partnership with Redwood. The two companies’ goals of sustainability and cost-effectiveness will help the development of the electric vehicle sector, along with the ongoing production of energy storage products that are becoming more popular.
Williams said:
“Envision AESC’s partnership with Redwood Materials will allow all production scrap from our US factory to be recycled, and, eventually, for Redwood to supply material for AESC. This circular supply chain supports Envision AESC’s deep commitment to sustainability and already creates substantial cost savings for Envision AESC that will be passed down to future electric vehicles and energy products.”
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Two Tesla Execs linked to advanced recycling startup Redwood Materials
Batteries from AESC’s facility in Smyrna, Tennessee, are being used to power electric buses, energy storage units, and the Nissan LEAF, among many other products, a Redwood spokesperson told Teslarati. Additionally, the material being received by Redwood from both the Tesla Gigafactory makes up for more than 1 GWh of material from Panasonic alone. This is ultimately fueled by the expansion of the Gigafactory, and the material received by Redwood will return to Panasonic and be put into new batteries, according to Redwood’s spokesperson.
Redwood will recycle all production scrap from any of its partners, including cathode and anode materials and cells or battery modules that don’t pass validation and are past the point of repair. The goal of its partnership with AESC is to produce material that could eventually be returned to the supplier as a part of a fully circular supply chain, eliminating the need for massive mining pushes or extensive contracts with battery material suppliers, the spokesperson added.
Redwood’s development of recycled goods will eventually turn the EV sector into an even more sustainable industry that could lead to the complete phase-out of combustion engines altogether. If batteries are sourced properly as the EV sector continues to grow, many of the cars on the road could contain recycled materials thanks to Redwood’s initiative, turning the already Earth-friendly EV sector into one of the most sustainable industries globally.
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Nvidia CEO Jensen Huang explains difference between Tesla FSD and Alpamayo
“Tesla’s FSD stack is completely world-class,” the Nvidia CEO said.
NVIDIA CEO Jensen Huang has offered high praise for Tesla’s Full Self-Driving (FSD) system during a Q&A at CES 2026, calling it “world-class” and “state-of-the-art” in design, training, and performance.
More importantly, he also shared some insights about the key differences between FSD and Nvidia’s recently announced Alpamayo system.
Jensen Huang’s praise for Tesla FSD
Nvidia made headlines at CES following its announcement of Alpamayo, which uses artificial intelligence to accelerate the development of autonomous driving solutions. Due to its focus on AI, many started speculating that Alpamayo would be a direct rival to FSD. This was somewhat addressed by Elon Musk, who predicted that “they will find that it’s easy to get to 99% and then super hard to solve the long tail of the distribution.”
During his Q&A, Nvidia CEO Jensen Huang was asked about the difference between FSD and Alpamayo. His response was extensive:
“Tesla’s FSD stack is completely world-class. They’ve been working on it for quite some time. It’s world-class not only in the number of miles it’s accumulated, but in the way it’s designed, the way they do training, data collection, curation, synthetic data generation, and all of their simulation technologies.
“Of course, the latest generation is end-to-end Full Self-Driving—meaning it’s one large model trained end to end. And so… Elon’s AD system is, in every way, 100% state-of-the-art. I’m really quite impressed by the technology. I have it, and I drive it in our house, and it works incredibly well,” the Nvidia CEO said.
Nvidia’s platform approach vs Tesla’s integration
Huang also stated that Nvidia’s Alpamayo system was built around a fundamentally different philosophy from Tesla’s. Rather than developing self-driving cars itself, Nvidia supplies the full autonomous technology stack for other companies to use.
“Nvidia doesn’t build self-driving cars. We build the full stack so others can,” Huang said, explaining that Nvidia provides separate systems for training, simulation, and in-vehicle computing, all supported by shared software.
He added that customers can adopt as much or as little of the platform as they need, noting that Nvidia works across the industry, including with Tesla on training systems and companies like Waymo, XPeng, and Nuro on vehicle computing.
“So our system is really quite pervasive because we’re a technology platform provider. That’s the primary difference. There’s no question in our mind that, of the billion cars on the road today, in another 10 years’ time, hundreds of millions of them will have great autonomous capability. This is likely one of the largest, fastest-growing technology industries over the next decade.”
He also emphasized Nvidia’s open approach, saying the company open-sources its models and helps partners train their own systems. “We’re not a self-driving car company. We’re enabling the autonomous industry,” Huang said.
Elon Musk
Elon Musk confirms xAI’s purchase of five 380 MW natural gas turbines
The deal, which was confirmed by Musk on X, highlights xAI’s effort to aggressively scale its operations.
xAI, Elon Musk’s artificial intelligence startup, has purchased five additional 380 MW natural gas turbines from South Korea’s Doosan Enerbility to power its growing supercomputer clusters.
The deal, which was confirmed by Musk on X, highlights xAI’s effort to aggressively scale its operations.
xAI’s turbine deal details
News of xAI’s new turbines was shared on social media platform X, with user @SemiAnalysis_ stating that the turbines were produced by South Korea’s Doosan Enerbility. As noted in an Asian Business Daily report, Doosan Enerbility announced last October that it signed a contract to supply two 380 MW gas turbines for a major U.S. tech company. Doosan later noted in December that it secured an order for three more 380 MW gas turbines.
As per the X user, the gas turbines would power an additional 600,000+ GB200 NVL72 equivalent size cluster. This should make xAI’s facilities among the largest in the world. In a reply, Elon Musk confirmed that xAI did purchase the turbines. “True,” Musk wrote in a post on X.
xAI’s ambitions
Recent reports have indicated that xAI closed an upsized $20 billion Series E funding round, exceeding the initial $15 billion target to fuel rapid infrastructure scaling and AI product development. The funding, as per the AI startup, “will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products.”
The company also teased the rollout of its upcoming frontier AI model. “Looking ahead, Grok 5 is currently in training, and we are focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and 𝕏 to transform how we live, work, and play,” xAI wrote in a post on its website.
Elon Musk
Elon Musk’s xAI closes upsized $20B Series E funding round
xAI announced the investment round in a post on its official website.
xAI has closed an upsized $20 billion Series E funding round, exceeding the initial $15 billion target to fuel rapid infrastructure scaling and AI product development.
xAI announced the investment round in a post on its official website.
A $20 billion Series E round
As noted by the artificial intelligence startup in its post, the Series E funding round attracted a diverse group of investors, including Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group, among others.
Strategic partners NVIDIA and Cisco Investments also continued support for building the world’s largest GPU clusters.
As xAI stated, “This financing will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products reaching billions of users, and fuel groundbreaking research advancing xAI’s core mission: Understanding the Universe.”
xAI’s core mission
Th Series E funding builds on xAI’s previous rounds, powering Grok advancements and massive compute expansions like the Memphis supercluster. The upsized demand reflects growing recognition of xAI’s potential in frontier AI.
xAI also highlighted several of its breakthroughs in 2025, from the buildout of Colossus I and II, which ended with over 1 million H100 GPU equivalents, and the rollout of the Grok 4 Series, Grok Voice, and Grok Imagine, among others. The company also confirmed that work is already underway to train the flagship large language model’s next iteration, Grok 5.
“Looking ahead, Grok 5 is currently in training, and we are focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and 𝕏 to transform how we live, work, and play,” xAI wrote.
Nvidia CEO Jensen Huang explains difference between Tesla FSD and Alpamayo
Elon Musk confirms xAI’s purchase of five 380 MW natural gas turbines
