Panasonic & Redwood Materials sign multibillion dollar battery production deal
This deal will see Redwood Materials supply Panasonic with recycled high-nickel cathode materials for US battery production.
One of the components which has come up against supply shortages worldwide, and especially in the United States, is that of batteries. Various sectors of technology have had issues keeping supplies of lithium, nickel, and further battery types shored up and it has caused more than a few product shortages and supply delays, particularly in the electric vehicle (EV). Panasonic and Redwood Materials are making a move to help assuage the issue in the US, though. The two just signed a deal for Redwood to supply Panasonic with recycled nickel cathode materials for battery production in the United States.
The deal was confirmed by Panasonic on its investor relations website on November 15, 2022. According to the deal, Redwood Materials, a battery recycling company formed by former Tesla CTO JB Straubel, will begin supplying high-nickel cathode materials to Panasonic Energy starting in 2025. The materials will be used to supplement US EV battery production for the following years after. There was no word on what Panasonic will pay for the deal, but according to Straubel, its valuation is said to be in the multibillions USD.
EV batteries have been a matter of constant concern as of late. Tesla has been looking to shift its operations deeper into battery production as well and eyeing Texas as a spot for future Lithium refinery plans. Meanwhile, as Ford has foraged further into the EV industry with vehicles like the F-150 Lightning, it has also warned that EV battery costs will remain elevated as inflation remains problematic in the current global economy. Elon Musk even opined that he believes lithium refinery is currently a “license to print money.”
With this major deal between Redwood Materials and Panasonic, it would seem plans are underway to curtail battery shortages in the years ahead. Stay tuned for further updates and EV news here at Shacknews.
TJ Denzer posted a new article, Panasonic & Redwood Materials sign multibillion dollar battery production deal