Redwood Materials, a Nevada-based e-waste recycling startup, has partnered with vehicle manufacturer Ford to build a closed-loop for battery recycling and create a domestic battery supply chain for electric vehicles (EVs) in the US.

Redwood Material currently supplies recycled anode copper foil and cathode active materials to its US partners. Now, the company will also support Ford by providing recycled battery materials and creating a local supply of these battery materials in the country.

According to Ford, recycling batteries is expected to increase the supply of necessary battery raw materials, reduce reliance on imports, and in turn drive down the costs of its EVs.

As a part of the partnership, Ford has invested USD 50 million in Redwood Materials to support the latter expand its presence across the US. Ford’s investment is a part of its USD 30 billion budget set aside for electrification through 2025.

Over the long term, the two companies primarily aim to collect and disassemble end-of-life batteries from Ford’s EVs and recycle them to reduce the cost associated with sourcing new battery raw materials.