After Redwood Materials announced in February that it would build at least two major battery materials recycling and manufacturing plants in Europe, the search for a location to do so narrowed down considerably.
The location in northeast Germany was one of Redwood's favorites. However, the investment could still fail due to Germany's high electricity costs. The recycling process is very energy intensive, and German electricity prices can add nine or ten figures to annual costs, Handelsblatt said.
That is why the recycling company is also considering a location in Scandinavia. Central or northern Sweden were named, and according to several insiders, the company had detailed discussions and prepared final cost estimates.
According to current plans, Redwood wants to select a location this fall and has already opened a small office in the German city of Mannheim. From there, ex-BASF manager Dirk Demuth will lead the European expansion.
In terms of locations in Germany, the report says that wind power in Schleswig-Holstein, Mecklenburg-Vorpommern and Saxony made the federal states attractive.