According to Charged EVs, Redwood specialists say that the components that make a battery, lithium, nickel, cobalt, copper and graphite represent 80% of the cost of a lithium-based battery and are currently made in Asia.

This is why the American company is planning to develop these materials, which comprise the cathode and anode, in the US, while also using recycled materials in the process, for more sustainable cells.

Panasonic and Redwood Materials are going to collaborate on recycling used batteries in order to recover things like cathode materials and copper foil. Panasonic will use the recovered materials at the company's new plant in Kansas.

Redwood officials say that the two billion USD loan will help the company build its facility, where it hopes to produce 100 GWh of battery capacity per year, which should be enough for manufacturing one million EVs per year.