Ford Motor Co. is investing $ 50 million in a newly formed electric vehicle battery recycling company to reduce reliance on third-party battery suppliers in the United States.
In a statement, Ford said the investment will go to Redwood Materials, a Nevada-based company founded by former Tesla chief JB Straubel.
Today, Redwood can recover 95% of the precious metals in electric vehicle batteries such as nickel, cobalt, lithium and copper, all of which could dry up as the world shifts from combustion to electric vehicles.
Ford Motor says locally sourced anode and cathode materials can reduce battery costs, increase material supply and reduce reliance on imported materials.
Ford has already announced plans to build two battery factories in North America with Korean partner SK Innovation starting around 2025.
Ford expects 40% of global auto sales to be fully electric by 2030.