BMW and Redwood Deepen US Battery Recycling Effort

Automaker’s partnership with Redwood gains traction as EV makers seek secure, domestic supply of critical materials

10 Feb 2026

BMW of North America’s partnership with Redwood Materials has become a focal point in the effort to strengthen the US electric vehicle supply chain, as automakers confront growing demand for critical battery metals and rising geopolitical risks.

Announced in September 2024, the collaboration focuses on collecting and recycling batteries from BMW’s electric and hybrid models across the country. Instead of shipping used batteries abroad, Redwood extracts key materials such as lithium, nickel and cobalt for reuse in domestic production. The process supports a closed-loop system that reduces the need for new mining and limits waste.

The logic behind the partnership has gained weight over the past year. Soaring demand for EVs, tightening emissions rules and supply disruptions have heightened pressure on carmakers to secure stable access to raw materials. By integrating recycled inputs, BMW aims to lower its exposure to volatile global markets while cutting its environmental footprint.

Founded by former Tesla executive JB Straubel, Nevada-based Redwood Materials has become a leading recycler of EV batteries in North America. The company says it can recover up to 98 per cent of key metals from end-of-life batteries, providing a credible alternative to sourcing from new mines. As larger volumes of EV batteries reach the end of their life, Redwood’s capacity to scale recycling operations is emerging as a strategic advantage.

The initiative aligns with US policy goals to localise clean energy supply chains and strengthen manufacturing. Federal and state incentives are increasingly focused on retaining material value within the country, creating domestic jobs and reducing reliance on foreign suppliers.

Industry analysts caution, however, that challenges remain. The flow of retired EV batteries is still limited, and the economics of recycling depend on fluctuating commodity prices. Nonetheless, the sector is shifting rapidly toward closed-loop solutions that promise greater resilience.

BMW’s work with Redwood reflects a broader transition across the EV market, one in which yesterday’s batteries are set to power tomorrow’s vehicles, forming the basis of a more sustainable and secure electric ecosystem.