GM Teams Up with Tesla Co-founder's Company to Recycle EV Batteries

General Motors unveiled its collaboration with Redwood Materials to recycle EV battery waste.

The recycling firm was established by JB Straubel, a former chief technology officer of Tesla, and will manage all the EV battery scraps from GM's factories in Warren, Ohio, and Spring Hill, Tennessee.

Redwood is partnering with Ultium Cells LLC, a joint battery venture between GM and South Korea's LG Energy Solution, a subsidiary of LG Chem, and a key lithium-ion battery provider to Audi, Mercedes-Benz, and GM, according to The Verge.

Under this arrangement, Redwood has established connections with most US EV battery manufacturers. Redwood plans to recycle lithium-ion battery cathode and anode materials. Redwood will manufacture high-quality battery materials and sell them to its partners for future EV battery manufacturing.

A Win-Win Solution for Customers and Environment

GM stated in its media release: "Together, the improved chemistry, efficient design, battery, and drive unit flexibility, along with GM's ability to manufacture at scale in its joint venture with LG Energy Solution, will allow GM to make remarkable progress in driving down costs for customers."

The car manufacturer also noted that battery design allows its creative designers to "reimagine vehicle styling" and less space for batteries will result in more room, "better passenger comfort, and bolder, more dynamic exteriors designed to improve aerodynamics for greater vehicle efficiency."

Ultium Cells LLC ships materials to Redwood's Nevada headquarters for recycling and processing. The two joint venture facilities will generate 80 GWh of battery cells annually, with a third factory in Michigan under construction.

GM Plug-in Hybrids Coming in 2027

In a separate development, GM announced that North America will have plug-in hybrids by 2027. CEO Mary Barra told investors in January that GM will debut plug-in hybrids to meet 2027 fuel efficiency and tailpipe pollution regulations, as reported by The Detroit News.

Automakers are prompted to work hard to reduce pollution as these laws roll in. Barra noted that GM sees "hybrids will be part of the solution" but that depends on how long a "robust charging infrastructure" will be established.

While Toyota Motor Corp. and Ford Motor Co. have concentrated on hybrids, GM has long advocated for an all-electric fleet, which is paying off as EV demand falls short and charging infrastructure remains undeveloped.

Since GM declared its all-electric objective, regulatory criteria have evolved, making plug-in hybrids essential to reaching them and giving consumers more alternatives.

Moreover, in the second half of the year, GM will offer cheaper Equinox, Blazer, and Silverado EV grades, while Cadillac will add the Escalade IQ and Optiq SUVs. The carmaker plans to construct and sell 200,000-300,000 Ultium EVs in North America by 2024.