Redwood & Caterpillar Partner on Battery Recycling for Mining Boom
The relentless global demand for batteries, fueled by the accelerating shift towards electric vehicles and renewable energy storage, is ushering in a new era for the mining industry. However, this “battery boom” presents a critical challenge: ensuring the supply of essential minerals like lithium, cobalt, and nickel doesn’t come at an unsustainable environmental cost. In a significant move addressing this dilemma, battery recycling innovator Redwood Materials and heavy equipment giant Caterpillar have announced a landmark partnership to establish a circular supply chain for lithium-ion batteries from Caterpillar’s electric mining equipment.
The collaboration, solidified by Caterpillar Venture Capital’s investment in Redwood Materials’ $1 billion Series D funding round, marks a pivotal step towards mitigating the environmental impact traditionally associated with mineral extraction. Conventional mining, particularly for battery minerals, is notoriously water-intensive and can lead to habitat destruction, soil degradation, and water and air pollution. As projections indicate a four to six-fold increase in lithium-ion battery capacity by 2030, the pressure on raw material supply chains is immense, underscoring the urgency for sustainable solutions.
Redwood Materials, founded by former Tesla CTO JB Straubel, is at the forefront of this transformation, championing a closed-loop battery manufacturing process. The company’s innovative technology can recover, on average, more than 95% of critical elements such as lithium, cobalt, nickel, and copper from end-of-life batteries through a highly efficient process involving mechanical shredding, chemical extraction, and purification. This advanced recycling method is remarkably sustainable, using 80% less energy, reducing CO2 emissions by 70% to 92%, and requiring 80% less water compared to traditional mining and refining of virgin ores. Furthermore, Redwood’s operations are entirely powered by renewable energy, with zero liquid discharge, ensuring minimal environmental footprint.
The recovered materials are then remanufactured into high-grade battery components, including cathode active material and anode copper foil, which can be directly supplied back to battery cell manufacturers, thereby reducing dependence on newly mined resources and bolstering a domestic supply chain. Redwood currently processes over 20 gigawatt-hours (GWh) of lithium-ion batteries annually, enough to equip over 100,000 cars, and aims to produce enough recycled battery material for over 1.3 million electric vehicles annually by 2028.
Caterpillar’s embrace of this recycling partnership reflects its strategic commitment to sustainability and the broader energy transition in the mining sector. The company is actively developing and deploying electric mining equipment, including its zero-emission R1700 XE underground loader, which is powered by a substantial 213-kWh battery pack. Caterpillar’s “Early Learner” program, launched in 2021, focuses on accelerating the validation of its battery-electric trucks at customer sites. The company is also designing modular large mining truck platforms with powertrain flexibility, offering diesel mechanical, diesel electric, and battery electric options for models like the Cat 793, 794, 796, and 798.
Crucially, Caterpillar has introduced its Cat Dynamic Energy Transfer (DET) system, an innovative solution designed to dynamically charge both diesel-electric and battery-electric large mining trucks while they are operating, enhancing efficiency and uptime. This system is compatible with their current electric truck platforms and is part of Caterpillar’s broader effort to provide integrated site solutions for miners transitioning to lower-carbon operations. The company is even transforming its Tucson Proving Ground into a “mine site of the future” to gain firsthand experience in running electrified mining operations.
This partnership between Redwood Materials and Caterpillar represents a significant stride towards a more sustainable future for the heavy industry. By closing the loop on critical battery materials, it not only addresses the environmental concerns of increased mining but also strengthens domestic supply chains, ultimately paving the way for a truly circular economy in the age of electrification.