VWGoA, Redwood to recycle EV batteries in the US

Volkswagen Group of America, Inc. (VWGoA) and Redwood Materials announced a collaborative initiative that will see both entities create a supply chain to recycle Audi and Volkswagen EV batteries with the goal of providing accessible and more sustainable electric mobility for American drivers.

“The electric transformation means making commitments in many areas throughout our business. In addition to our robust lineup of fully electric Audi e-tron models available now, having like-minded partners like Redwood Materials in place to further reduce environmental impact throughout the lifecycle of electric vehicles is critical,” said Audi of America President Daniel Weissland.

Audi has one of the largest and most robust fully electric model lineups, including the e-tron SUV, e-tron Sportback, and e-tron GT/RS e-tron GT, with more to come. Meanwhile, Volkswagen is following suit with its ID.4 and ID.Buzz.

That said, the new EV battery recycling collaboration will start with Audi and Volkswagen and will be facilitated by VWGoA’s nationwide network of approximately 1,000 dealers. The goal, according to the automotive conglomerate, is to remanufacture battery materials in a domestic supply chain.

“The path to a more sustainable future requires innovative solutions. The partnership with Redwood Materials offers a groundbreaking vision for helping to ensure electric vehicles operate not only without tailpipe emissions, but with a renewable purpose,” said Audi of America Government Affairs and Sustainability Spencer Reeder.

As Volkswagen Group brands plan to introduce more than 25 new battery-electric vehicles to American consumers through 2030, VWGoA aims to begin establishing battery recycling capabilities for current and future vehicles in North America now. In addition, the new EV battery recycling collaboration will integrate prototype batteries from Volkswagen’s research facilities such as the Battery Engineering Lab (BEL) in Chattanooga.

For Redwood Materials’ part, the battery recycling startup will work directly with VWGoA’s dealers to recover, safely package, transport, and recycle end-of-life EV battery packs from Volkswagen and Audi vehicles.

Redwood Materials explains that it will recover more than 95 percent of the metals in the collected batteries, like nickel, cobalt, lithium, and copper. Rather than exporting those metals overseas, Redwood Materials will use them to remanufacture anode and cathode components that it will supply back to US battery cell manufacturers, effectively creating a closed-loop supply chain for lithium-ion batteries.

“The transition to electric transportation and clean energy is coming and the batteries powering these technologies present an incredible opportunity. As more and more batteries reach end-of-life each year, an increasing and infinitely recyclable resource become available. Redwood and Volkswagen Group of America share a vision to create a domestic, circular supply chain for batteries that will help improve the environmental footprint of lithium-ion batteries, decrease cost and, in turn, increase access and adoption of electric vehicles,” said Redwood Materials Founder and CEO JB Straubel.

Redwood Materials believe that by localizing and using recycled batteries, they can help drive down the cost of electric vehicles as batteries are most often the most expensive part of an EV — accounting for 20 to 30 percent of the vehicle cost. Meanwhile, the Volkswagen Group aims to become a carbon-neutral circular company.

Their collaboration reflects a shared vision that could greatly affect the American EV industry.

Photos from Audi and Volkswagen

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