Battery Recycling Operations Already Profitable: JB Straubel
Source: Steven Loveday · INSIDE EVS · | January 31, 2022
CEO Straubel admits that Redwood Materials isn't yet profitable, but "the actual operations of recycling these batteries" is.
Source: Inside EVs
The Associated Press recently interviewed Redwood Materials CEO JB Straubel, and while there's plenty of fascinating information that can be learned from the interview, the profitability of battery recycling caught our attention.
As you may already be aware, JB Straubel left Tesla to work on a new project. At first, it seemed Redwood Materials would be strictly focused on battery recycling, which will soon become a very important industry. However, Straubel has made it clear that there's much more in store for Redwood Materials going forward.
That said, it's likely going to be a long time before Redwood is a profitable company. Much like Tesla was years ago, Redwood is entering into relatively uncharted territory, and it will spend a great deal of time growing and reinvesting. However, Straubel says the actual operation of recycling the batteries is already a money maker. AP News asked Straubel if Redwood is already selling recycled materials to make money. The CEO shared:
"We are. We’re not profitable yet because we’re growing so quickly and we’re reinvesting and will be for quite a few years. But the actual operations of recycling these batteries, that is profitable today. There’s really a quite a hunger for these materials."
More specifically, AP was asking whether it makes sense to get the copper out of an electric toothbrush and sell it. If you think about it, most people not only throw away batteries, but also throw away items like electric toothbrushes when they no longer work well. In response to the question, Straubel explained:
"Actually, it is. It’s not just copper. Lithium-ion batteries are one of the highest value materials to recycle of modern consumer goods. They’re just difficult to do, and it’s quite tricky to get all those valuable elements out."