Battery cells produced at Toyota’s future North American EV factory will someday contain a little Redwood Materials DNA.
The two companies announced Thursday that Redwood Materials will supply Toyota with cathode material and anode copper foil for battery cells produced at the automaker’s $13.9 billion factory in North Carolina that’s slated to go into production in 2025. The deal is valuable to Redwood. But it’s also a win for Toyota, which now has a U.S. source for two critical components that account for the majority of the cost of a battery cell and are manufactured entirely overseas.
While Redwood and Toyota didn’t disclose the terms of the agreement, it likely parallels a similar deal with Panasonic that is worth several billion dollars.
The deal marks an expansion of a partnership between Redwood Materials and Toyota that was announced in June 2022. Under that initial partnership, Redwood Materials agreed to refurbish or recycle batteries from Toyota’s hybrid and electrified vehicles. For batteries that can’t be refurbished, Redwood pulls out materials such as copper, lithium, cobalt and nickel and then remanufactures those materials into components that can be returned to Toyota for cell manufacturing.