The batteries of Lime's scooters and electric bicycles will be recycled by Redwood Materials.

The shared micromobility company Lime has formalized an agreement to send the batteries from its electric scooters and bicycles to Redwood Materials, which will be responsible for extracting and recycling essential minerals such as lithium, cobalt, nickel, and copper. This agreement, announced on Monday, makes Redwood Materials the exclusive partner for Lime's battery recycling in several cities across the United States, Germany, and the Netherlands. However, the agreement does not cover all the regions where Lime operates, which include cities in Europe, Asia, and Australia.

Lime has established other recycling partnerships in the past, particularly with Sprout through its suppliers. Nevertheless, this is the first time that the micromobility company has a direct relationship with a battery recycler in North America, which will process materials for recovery and subsequent reintegration into the supply chain. Redwood Materials, a startup based in Carson City, Nevada, was founded by former Tesla CFO JB Straubel and will be responsible for recovering materials from batteries once they are no longer usable. Once recycled, these materials will be reintroduced into the battery manufacturing process. This closed-loop manufacturing system, which can reduce the demand for mineral extraction and refining, is central to Redwood Materials' business model.

The collaboration also aligns with Lime's sustainability goals, as it seeks to decarbonize its operations by 2030. Over the past five years, the company has managed to reduce its Scope 1, 2, and 3 emissions by 59.5% from a 2019 baseline. Lime plans to present its carbon emissions results for 2024 in May. Andrew Savage, Vice President of Sustainability at Lime, commented that this collaboration represents a significant step toward establishing a more circular supply chain, ensuring that batteries are recycled responsibly at the end of their life cycle and that their materials are returned to the battery supply chain.

Additionally, Lime has formed partnerships with Gomi in the UK and VoltR in France and other European countries to utilize viable battery cells in "second-life" applications, such as consumer electronics including portable speakers and battery packs. Redwood Materials has also signed agreements with other micromobility companies, such as Lyft, Rad Power Bikes, and Specialized, to recycle their electric scooter and bicycle batteries. Redwood, which has raised over $2 billion in private funding, recently announced the opening of a research and development center in San Francisco.