A new collaboration by Ford is making headlines today, as analysts look at continuing progress on lithium-ion batteries.
The news is that Ford intends to partner with Redwood Materials, in order to recycle batteries and build a better supply chain for new batteries powering electric vehicles and more. It’s interesting to note that one of the collaborators behind Redwoods is former Tesla chief technology officer JB Straubel, which lends the firm a certain cred in this sector.
“Straubel’s startup is working with the Detroit automaker to figure out plans for everything from helping to process scrap material, to finding new life for worn-down batteries with ample capacity remaining, to helping Ford create new batteries out of salvaged lithium, nickel, cobalt, and copper,” writes Sean O’Kane at The Verge.
Lithium-ion battery design is a major piece of today’s green economy. These types of batteries, in which energy flows from one component to another, are ubiquitous in all sorts of consumer devices, as well as modern cars and trucks.
The partnering companies, O’Kane reports, hope to build a closed loop system where there is less demand for mining and more of the precious metals and natural resources can be reused.
Other clients like Nissan have also signed on to work with Redwood Materials, but O’Kane suggests that Ford’s relationship will be special:
The deal with Ford could provide a lot of opportunity for Redwood Materials to work (many battery limitations) out,” O’Kane writes. “Like many of its competitors, Ford is now deeply committed to electric vehicles. It released the Mustang Mach-E earlier this year and has an all-electric version of its F-150 coming in 2022, and those are just the first two flagships of an impending fleet of EVs coming from the automaker in the next decade.”
Meanwhile, GM is seeking its own recycling collaborator.
“Ultium Cells LLC, a joint venture between General Motors and LG Chem, has been steadily building up its battery cell manufacturing capacity in the U.S. since the venture was first announced in December 2019,” wrote Aria Alamalhodaei at TechCrunch in May. “But with each battery cell they produce, they’ll also produce waste — tricky-to-handle waste that also has too much inherent value to toss into a landfill.”
For those who have already made a mint off of Tesla, lithium-ion battery advances could be another cash cow. Continue looking at this aspect of the market as you’re putting together a competitive technology play.