BMW North America Partners with Redwood Materials to Recycle Lithium-Ion Batteries

BMW of North America and Redwood Materials announce a partnership to recycle lithium-ion batteries from BMW Group's electric vehicles in the U.S., aiming to create a closed-loop circular value chain.

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BMW of North America and Redwood Materials have announced a partnership to recycle lithium-ion batteries from all electric, plug-in hybrid-electric, and mild hybrid BMW, MINI, Rolls-Royce, and BMW Motorrad vehicles in the United States. This collaboration demonstrates a shared commitment to sustainability and marks a significant step toward creating a closed-loop circular value chain for lithium-ion batteries in the U.S.

Redwood Materials will work directly with BMW Group’s extensive network of nearly 700 locations across the country, including dealerships and distribution centers, to recover end-of-life lithium-ion batteries. The initiative ensures that critical minerals such as nickel, cobalt, lithium, and copper are recycled and refined. Approximately 95% to 98% of these minerals will be returned to the battery supply chain, contributing to the production of more sustainable electric vehicles. The recycling process significantly reduces environmental impact by lowering energy use by 80%, CO₂ emissions by 70%, and water consumption by 80% compared to conventional methods.

“Together with Redwood Materials, BMW is laying the groundwork for the creation of a fully circular battery supply chain in the U.S.,” said Denise Melville, Head of Sustainability at BMW of North America. “We have said before that the future of BMW is electric, digital, and circular, and this agreement brings us a step closer to meeting that goal.”

Redwood Materials currently operates a facility in Reno, Nevada, where battery components are recycled, refined, and manufactured. The company is also constructing a second campus in Charleston, South Carolina, near BMW Group Plant Spartanburg and Plant Woodruff. These plants will assemble at least six fully electric models and their high-voltage battery packs before the end of the decade. Redwood’s battery cell manufacturing partner, AESC, is also located nearby in Florence, South Carolina.

“The transition to electric mobility presents a tremendous opportunity to rethink how we manage the batteries that power our clean energy future,” said Cal Lankton, Chief Commercial Officer at Redwood Materials. “Our partnership with BMW of North America ensures responsible end-of-life battery management that will improve the environmental footprint of lithium-ion batteries, help decrease cost, and, in turn, increase access and adoption of electric vehicles.”

Source: Redwood Materials, BMW Group

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