In a significant move affirming Toyota’s commitment to electric vehicles, battery recycling startup Redwood Materials, led by Tesla cofounder JB Straubel, has announced an expanded agreement with the Japanese automaker.
This deal allows Redwood to recycle batteries from older Toyota vehicles, particularly the iconic Toyota Prius hybrids that revolutionized the automotive industry two decades ago.
Under the agreement, Redwood Materials will salvage materials from aging Prius batteries and use them in the production of new EV batteries.
Toyota plans to source Cathode Active Material and Anode copper foil from Redwood for its upcoming electric vehicles (EVs).
This initiative aligns with Toyota’s broader strategy to recycle, remanufacture, and repurpose nearly 5 million units, emphasizing a sustainable approach to the EV transition.
The collaboration gains significance as Toyota prepares to open a new $14 billion factory in North Carolina in 2025, where the salvaged materials will contribute to the production of future EV batteries.
While the financial details of the deal remain undisclosed, a similar agreement between Redwood Materials and Panasonic in 2022 was valued at billions of dollars.
Despite reservations and caution expressed by some traditional auto companies regarding the shift to EVs, this collaboration underscores Toyota’s proactive stance in embracing electric mobility and sustainable practices in battery production.