The cost of batteries has long been the biggest obstacle to making electric cars affordable for the masses, reports The Wall Street Journal (Aug. 29-30, 2020). As a result, electric vehicles still carry a hefty $12,000 average price premium compared with gas engine cars.
Since 50% to 75% of the cost of a battery for the industry now lies with its raw material, Redwood Materials, in Carson City, Nevada, sees potential for recycling to lower costs. Almost every day old iPhones and other used personal electronics arrive by the truckload at Redwood, where workers crack them open, pull out their batteries and strip them for raw materials. The firm believes refuse holds the key to driving the electric car revolution forward—and making the vehicles affordable enough for everyone to own one. (Another source is the supply of used EV batteries, which is exploding. Half-a-million EVs are expected to be scrapped in 2025).
For most battery manufacturers, where to find all the nickel, cobalt and lithium needed to make the batteries that power Tesla’s cars and their growing list of rivals is the number one problem. Extracting those materials from nature, through mining and other processes, is costly and difficult, and production is lagging far behind expected demand.
Redwood Materials’ tack is to quietly build the biggest car battery-recycling operation in the U.S., betting that it can perfect a fast and efficient way of collecting and repurposing those materials to disrupt the centuries-old mining industry. “Forever, the entire market has been dictated by the commodity price of these metals,” said Redwood’s CEO. “It is work that is essential if the industry is going to continue to increase production of electric cars at the pace companies are planning.”
Classroom discussion questions:
- When federal subsidies end, will demand for EVs remain high?
- What are the advantages and disadvantages of recycling vs. mining for raw materials?