A $3.5 billion battery recycling facility will be built in South Carolina.
Approximately 1,500 people will be employed over the course of 10 years at the plant, which will be located just outside Charleston. The first recycling process will be initiated by the end of the year when the ground is broken for the new factory.
Most of the materials used for electric vehicle batteries are imported from overseas. The company notes that it will cost $150 billion to create a 50,000 mile supply chain by the year 2030.
Most of the materials used for electric vehicle batteries are imported from overseas.
By recycling EV batteries domestically, it is claimed that it can help drive down emissions and reduce global security. The company says its operations will be 100% electric and it won't use fossil fuel in its processes.
According to the company, it can reduce CO2 emissions of EV battery materials by 80% compared to the current Asia-based supply chain.
In what is likely the largest economic development deal in the state's history, the state approved at least $225 million in taxpayer funded debt for the company.
Jeffrey "JB" Straubel was a former chief technology officer ofTesla. Redwood recycles EV batteries from Ford, Toyota, Nissan, Specialized, Amazon, and other companies.
The Nissan Leaf's batteries are nearing the end of their lifespan and need to be recycled. After receiving batteries from its partners, Redwood begins a chemical recycling process in which it strips out and refines the relevant elements. The refined material can be used to make batteries.
The Nissan Leaf's batteries are nearing their end of lifespan and need to be recycled.
Many of the new facilities are in the Midwest and South. The $7,500-per-vehicle tax credit requires electric vehicles to be assembled in the US in order to be eligible. There are concerns that the new tax credits could discriminate against companies without US based manufacturing facilities, but they have begun to make moves to localize production in the US.
The three new Ford battery plants will be able to produce 129GWh a year.
GlobalData predicts that global battery production will increase from 95.3GWh in 2020 to 410.5GWh in 2024. The transition to electric vehicles may be complicated by rising raw material prices.
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