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Redwood Materials has struck a deal with Volkswagen Group of America to recycle all end-of-life batteries from VW and Audi electric vehicles. 

Redwood will work directly with VW’s network of dealers in the US to recover, package, transport, and recycle end-of-life EV battery packs. 

That means batteries from more than 1,000 dealers across the US will be heading to Redwood’s facility in Northern Nevada, where the company will recover more than 95% of the remaining metals like nickel, cobalt, lithium and copper in the battery.

The metals will then be used to remanufacture anode and cathode components for US battery cell manufacturers. The materials will never leave the US and will serve as a closed-loop supply chain.

“For Volkswagen, going all-in on electrification means driving sustainable solutions at every turn,” said Scott Keogh, President and CEO, Volkswagen Group of America, Inc.

“Redwood Materials is a great partner to help us accelerate EV adoption in America. This collaboration allows us to move closer toward our goal of closing the loop for a circular EV economy, giving American consumers yet another reason to go electric.”

Currently, Redwood already recycles more than 6 GWh of lithium-ion batteries, the equivalent of 60,000 EV batteries, in Nevada.

“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 becomes available”, said JB Straubel, Redwood Materials Founder and CEO.

“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.”

VW is currently aiming for 55% of its US sales to be fully electric by 2025 and is heavily investing in manufacturing, R&D, and engineering across the US.

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