E-Scrap & Battery Recycling

Rivian widens Redwood Materials deal to cover battery recycling

Rivian has widened its Redwood Materials deal to cover battery recycling, joining the Nevada recycler's growing roster of OEM offtake commitments well before its own vehicles start cycling back at volume.

Waypoints

  1. Rivian has widened its Redwood Materials deal to cover battery recycling, per Automotive World.

  2. Redwood Materials was founded in 2017 by former Tesla CTO JB Straubel and operates hydrometallurgical processing lines in Nevada.

  3. Redwood's disclosed OEM recycling roster already includes Toyota, Ford, Volvo and Panasonic.

  4. Deal length, tonnage commitments and pricing were not disclosed by either company.

  5. Next milestone to track: a Rivian cathode or anode materials offtake within 12 to 18 months.

Rivian has widened its Redwood Materials deal to cover battery recycling, according to Automotive World.

The expansion pulls the Irvine, Calif.-based electric vehicle maker — producer of the R1T pickup, R1S SUV, and Amazon's EDV delivery van — into Redwood's closed-loop network of OEM recycling commitments. Redwood, the battery materials company founded in 2017 by former Tesla co-founder and CTO JB Straubel, has spent the past several years assembling offtake agreements with automakers pursuing defensible circularity claims.

What changes operationally

"Widening" implies a pre-existing relationship — most likely covering pack logistics, manufacturing scrap, or warranty returns — that now extends into end-of-life recycling. That's the segment where Redwood's hydrometallurgical lines process shredded packs into black mass, then separate out lithium, cobalt, nickel and copper for re-entry into the supply chain.

For Rivian, the immediate effect is small. Its first consumer vehicles shipped in late 2021, which means the meaningful end-of-life pool is at minimum an eight-year cycle out — typical EV battery warranty length — and likely longer given the durability of modern packs.

The near-term feedstock Redwood will see from Rivian is mostly production scrap from the Normal, Illinois plant and warranty returns, not the high-volume retired-vehicle stream that makes recycling truly economic.

But signing now gives Redwood a forecasting window for when Rivian's volume does cycle back. It also locks Rivian into the largest domestic battery recycling roster ahead of competitors still sorting out their own end-of-life strategies.

Why this matters for the broader recycling stream

Redwood's publicly disclosed OEM roster already includes Toyota, Ford, Volvo and Panasonic. Each new offtake commitment adds feedstock that keeps the Nevada hydrometallurgical lines fed — and that business runs on throughput.

Recovery economics depend on enough black mass arriving to keep operators productive, recovery rates stable, and reagent costs amortized across a continuous tonnage stream.

Rivian's contribution is incremental in absolute terms. But each new OEM name on the inbound ledger strengthens Redwood's position with lenders, equity investors, and the U.S. Department of Energy, which has backed the company through earlier loan and grant programs aimed at building a domestic battery materials supply chain.

It also sharpens the implicit question for competitors: which recycler will your packs go to when they retire?

What the announcement doesn't say

Neither Rivian nor Redwood disclosed deal length, tonnage commitments, or pricing. The Automotive World report did not include executive statements from either side, and Redwood has historically kept contract terms quiet even with publicly named partners.

That leaves open questions for practitioners tracking the circular battery economy:

  • Whether the agreement extends to Redwood's downstream cathode active material business
  • Whether Rivian will convert the recycling offtake into a closed-loop materials purchase — buying back Redwood-recovered metals for its own pack production
  • How end-of-life title transfer is structured, given Rivian's exposure to fleet buyers and its own financing arm

The next milestone

Watch for a Rivian cathode or anode materials offtake announcement in the next 12 to 18 months. That move would convert the recycling agreement from a one-way feedstock relationship into a closed-loop materials commitment — the structure that turns a recycling contract into a circular supply chain, and the one regulators in California, the EU, and increasingly at the U.S. federal level are starting to require for EV battery circularity claims.

Until then, this is an incremental deal on Redwood's roster — but one that arrives at a moment when every major EV maker without a recycling commitment is overdue to sign one.

via Google News: Battery recycling and e-waste (Source)

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Elena Vasquez

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Senior reporter covering technology and product news in Circular economy and the environmental industry at Circular Wire.

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