Panasonic and Redwood Materials strike multibillion-dollar battery component deal

Panasonic Energy of North America, the largest supplier of artillery cells for electrical vehicles successful the U.S., has struck a woody with Nevada-based artillery recycling institution Redwood Materials to bargain a cardinal worldly for the accumulation of batteries.

Redwood Materials, which volition proviso high-nickel cathode to Panasonic Energy starting successful 2025, says the statement is worthy billions of dollars, but declined to springiness an nonstop figure. 

"I deliberation it's a bigger woody than is instantly evident to astir radical conscionable due to the fact that nary 1 truly sees oregon is acquainted with what a cathode worldly is oregon wherever it goes," said Redwood Materials Founder and CEO JB Straubel, who was Tesla's main exertion serviceman until 2019, and helped invent a batch of the halfway exertion utilized by the electrical conveyance maker. "It (cathode material) whitethorn beryllium astir 50 percent of the outgo of the battery."

Right now, Panasonic imports astir each of the cathode worldly utilized successful the accumulation of artillery cells astatine its works successful Sparks, Nevada.  That installation supplies cells to the Tesla gigafactory, which manufactures artillery packs that powerfulness Tesla vehicles sold successful North America.  In July, Panasonic announced it volition physique a $4 cardinal artillery works successful DeSoto, Kansas, extracurricular of Kansas City.  The caller Panasonic installation  will usage high-nickel cathode supplied by Redwood materials erstwhile accumulation starts successful 2025.

For Straubel, the statement with Panasonic Energy is further validation of his imaginativeness for Redwood Materials. When helium started the institution successful 2017, helium told investors and those pursuing the institution that artillery recycling would beryllium captious to the enlargement and maturation of electrical vehicles, mostly due to the fact that it volition beryllium a much businesslike and cost-effective mode to proviso the cardinal components needed for artillery cells.  

"That's portion of the value of this announcement," helium said. "This is the largest and truly archetypal Gigafactory standard proviso concatenation announcement for the proviso concatenation of batteries successful the U.S..". 

Redwood Materials presently employs astir 600 workers successful the U.S. and estimates that fig to emergence to astir 1,500 by the clip it is producing ample quantities of high-nickel cathode. By 2030, the institution expects to nutrient anode and cathode materials annually to powerfulness 5 cardinal electrical vehicles.