BMW of North America and Redwood Materials have announced a partnership aimed at recycling lithium-ion batteries from hybrid and electric vehicles (EVs) across the United States (U.S.), signalling a new step towards creating a closed-loop circular value chain for lithium-ion batteries.

According to BMW, the partnership will encompass batteries from all-electric, plug-in hybrid-electric, and mild hybrid BMW, MINI, Rolls-Royce, and BMW Motorrad vehicles nationwide. Redwood Materials will work directly with BMW’s extensive network of nearly 700 locations nationwide, including dealerships, distribution centers, and other facilities, to recover end-of-life lithium-ion batteries.

Denise Melville, Head of Sustainability at BMW of North America, emphasized the importance of this initiative stating, “Together with Redwood Materials, BMW is laying the groundwork for the creation of a fully circular battery supply chain in the US. 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.”

The recycling process developed by Redwood Materials comes with notable environmental credentials. It can recover 95% to 98% of critical minerals such as nickel, cobalt, lithium, and copper, returning them to the battery supply chain for use in new EVs. This process greatly reduces the environmental impact compared to conventional mining or other recycling technologies, cutting energy usage by 80%, CO2 emissions by 70%, and water consumption by 80%.

Cal Lankton, Chief Commercial Officer at Redwood Materials, highlighted the broader implications of this partnership stating, “Our partnership with BMW of North America ensures responsible end-of-life battery management that will improve the environmental footprint of lithium-ion batteries, help decrease cost and, in turn, increase access and adoption of electric vehicles.”

Redwood Materials currently operates a recycling facility in Reno, Nevada, and is constructing a second campus in Charleston, South Carolina. The South Carolina location is strategically positioned near BMW’s production plants in Spartanburg and Woodruff, where the automaker plans to assemble at least six fully electric models and their high-voltage battery packs by the end of the decade.

Notably, this partnership builds on BMW’s commitment to U.S. operations. The company’s South Carolina plant, established in 1992, has grown to become the largest single BMW plant globally, with an annual capacity of up to 450,000 units. The proximity of Redwood’s new plant to BMW’s operations and its battery cell manufacturing partner, AESC, in Florence, SC, further supports the potential for a localized battery supply chain.

Read More: BMW Kicks Off Pre-Series Production Of Electric Motors For Neue Klasse EVs At Steyr Plant

As the EV industry continues to grow, partnerships like this between BMW and Redwood Materials are crucial for addressing the full lifecycle of EVs. By ensuring the responsible management of end-of-life batteries and creating a circular economy for critical materials, this collaboration sets a new standard for sustainability in the automotive landscape.

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