Redwood Materials collaborates with Korean battery maker L&F

Redwood Materials, an American battery recycling firm, has recently stated that it has entered into a partnership with Korea-based battery material maker, L&F Co to help it transform into a major battery component manufacturer in the next decade.

Reportedly, Redwood has inked a multi-year contract for using L&F's manufacturing and design technology at the new U.S. facility to make battery cathodes which could help supply 1 million electric vehicles per year by 2025 and approximately 5 million by 2030.

This partnership is in line with Redwood Chief Executive J.B. Straubel's idea of building a supply chain for EV batteries, from raw materials to recycling.

Currently, Redwood recycles lithium, cobalt, copper, and aluminum from multiple sources with the Nevada battery plant, jointly owned and run by Tesla Inc. and Panasonic Corp. That factory can make batteries for around 350,000 electric vehicles a year.

On the other hand, L&F provides battery materials to SK, LG Energy Solution, and Samsung SDI in Korea.

Redwood was established in 2017 by Straubel, co-founder of Tesla who left the company to start his own firm. In the past month, Redwood has announced the second major alliance with L&F.

The company claims that in September it would sell anode and cathode material to Ford Motor Co., which has a joint venture in the United States with Korean battery company SK Innovation to produce electric vehicle battery cells.

Its technology will allow it to increase its yearly cathode manufacturing capacity in the United States from 100 gigawatt-hours in 2025 to 500 gigawatt-hours by 2030.

The agreement is only specific to North America and Europe with the company continuing with its cathode research and development.

PitchBook, an investment website, values Redwood at $3.8 billion after receiving $775 million in July from investors including Amazon.com Inc, Fidelity, T. Rowe Price, and Baillie Gifford.

Source Credit - https://www.usnews.com/news/technology/articles/2021-10-27/exclusive-us-battery-startup-redwood-materials-sets-deal-with-koreas-l-f