Redwood Materials Expands US Lithium-Ion Battery Recycling Capacity, While BASF Boosts German Operations for Critical Mineral Recovery

openPR.com USA, Germany

Overview

In a significant move for the battery recycling industry in July 2026, Redwood Materials expanded its lithium-ion battery recycling capacity in the U.S., while BASF boosted its capabilities in Germany. Redwood Materials is enhancing infrastructure by increasing processing capacity for lithium, nickel, cobalt, and copper from end-of-life EV batteries. BASF is expanding its recycling and black mass processing capacity in Germany to improve critical mineral recovery processes for next-generation lithium-ion batteries. These investments are crucial for advancing the circular economy and building sustainable battery supply chains.

In Depth

Key Findings

In July 2026, significant developments in electric vehicle (EV) battery recycling capabilities were reported globally. Notably, Redwood Materials in the United States and BASF in Germany both substantially expanded their lithium-ion battery recycling processing capacities. These strategic investments are aimed at recovering valuable critical minerals from spent batteries, thereby enhancing the sustainability and resilience of the battery supply chain.

Technical Details

Redwood Materials, based in Nevada, USA, has augmented its processing capacity for highly efficient recovery of critical minerals, including lithium, nickel, cobalt, and copper, from end-of-life EV batteries. The company integrates advanced hydrometallurgical processes with mechanical pre-treatment to refine recovered materials to high-purity levels suitable for reuse in new battery manufacturing. This enhances the quality of secondary materials derived from battery recycling, reducing reliance on virgin raw materials. Concurrently, BASF, a German chemical giant, has expanded its battery recycling capabilities and ‘black mass’ processing facilities in Europe. Black mass refers to the powdered material obtained after mechanically shredding spent lithium-ion batteries, which contains valuable metals such as lithium, nickel, and cobalt. BASF is improving its hydrometallurgical techniques to efficiently recover these high-purity critical minerals essential for next-generation lithium-ion batteries from the black mass.

Background & Context

The burgeoning adoption of electric vehicles and stationary energy storage systems has led to an exponential increase in demand for lithium-ion batteries, simultaneously creating a global challenge for the management of spent batteries. Governments worldwide are intensifying regulations and incentives for battery recycling, driven by objectives of resource security, environmental protection, and the promotion of a circular economy. The recent investments by Redwood Materials and BASF address these market needs and regulatory trends, playing a crucial role in localizing and regionalizing the battery supply chain. Recycled materials also contribute to reducing the carbon footprint associated with battery manufacturing.

Strategic Significance & Outlook

The expansion of recycling capacities by Redwood Materials and BASF represents a significant stride towards realizing a circular economy in the battery industry. As these facilities become fully operational, a greater volume of end-of-life batteries will be efficiently processed, returning valuable resources to the supply chain. This is expected to improve the supply stability of critical minerals like lithium, nickel, and cobalt, potentially mitigating price volatility. Furthermore, the availability of high-quality recycled materials will accelerate the development and manufacturing of next-generation batteries, contributing to a sustainable future for mobility and energy storage. In the long term, these initiatives are poised to set global standards for battery recycling technology and infrastructure, leading the construction of a more robust and environmentally responsible battery ecosystem.

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