BMW North America, Redwood partner on EV battery recycling

BMW North America has partnered with Redwood Materials to recycle lithium-ion batteries from its electric, plug-in hybrid and mild hybrid vehicles in the U.S., the companies said.

The exclusive agreement Sept. 19 gives Redwood more access to the nascent — but growing — fleet of spent EV batteries, and it will give BMW a recycling partner near one of its largest vehicle assembly plants.

Redwood already acquires depleted or recalled batteries and battery production scrap from several major automakers: Volkswagen, Audi, Ford, Tesla, Toyota, Volvo, Polestar and General Motors. Those brands and BMW North America, which includes BMW, Mini and Rolls-Royce, made up more than 80 percent of EV registrations in the U.S. in 2023 and more than three-quarters of EV registrations from January to July this year, according to S&P Global Mobility.

Redwood will work with BMW Group's network of about 700 dealerships and distribution centers to recover end-of-life batteries. More than 95 percent of the critical minerals in the batteries, such as nickel, cobalt, lithium and copper, will be returned to the battery supply chain, the companies said. BMW was drawn to Redwood's ability to return the materials to the battery supply chain, BMW spokesman Phil Dilanni said.

"Together with Redwood Materials, BMW is laying the groundwork for the creation of a fully circular battery supply chain in the U.S.," Denise Melville, head of sustainability for BMW of North America, said in a statement. "We have said before that the future of BMW was electric, digital, and circular, and this agreement brings us a step closer to meeting that goal."

Redwood's next campus is under construction in South Carolina, which has become an EV hub. The state received nearly $14 billion in automotive capital investment from 2017 to 2023, according to the state's EV website.

BMW plans to build at least six EVs and assemble battery packs at its plants in Spartanburg County and Woodruff, S.C. The automaker's battery cell supplier, AESC, has a facility in Florence, S.C.

Some of Redwood's other partnerships go beyond battery recycling. Redwood will supply cathode and anode materials to Panasonic, Tesla's battery supplier, in a multibillion-dollar agreement.

Toyota started working with Redwood by testing and recycling batteries. It will work with Redwood on battery health screening and data management, remanufacturing and battery material supply. Toyota will also use Redwood's cathode active material in its upcoming N.C. battery plant.