Lime, a leading shared micromobility company, has announced an exclusive partnership with Redwood Materials, a Nevada-based startup, to recycle batteries used in its scooters and e-bikes. The agreement marks a significant step towards establishing a more circular supply chain, reducing the demand for mining and refining critical minerals like lithium, cobalt, nickel, and copper.

Under the partnership, Redwood Materials will extract and recycle these critical minerals from Lime's batteries, which will then be reintroduced into the battery manufacturing process. This closed-loop system is at the heart of Redwood Materials' business model, and aligns with Lime's own sustainability goals. Lime aims to decarbonize its business by 2030 and has already made significant progress in reducing its Scope 1, 2, and 3 emissions by 59.5% in five years.

This partnership is the first time Lime has had a direct relationship with a battery recycler in North America, and it doesn't cover every region in which Lime operates. However, it's a crucial step towards achieving the company's sustainability goals. Lime has had other recycling partnerships in the past, notably with Sprout via its downstream vendors, but this agreement marks a significant milestone in its efforts to reduce waste and promote recycling.

Redwood Materials, founded by former Tesla CFO JB Straubel, has raised over $2 billion in private funds and has agreements with other micromobility companies, including Lyft, Rad Power Bikes, and Specialized, to recycle their e-bike and scooter batteries. The company recently opened an R&D center in San Francisco, further solidifying its position as a leader in the battery recycling space.

Lime also has partnerships with Gomi in the UK and VoltR in France and other European countries to harvest viable battery cells for "second life" applications, including consumer electronics like portable speakers and battery packs. This multi-pronged approach demonstrates Lime's commitment to reducing waste and promoting sustainability throughout its operations.

The implications of this partnership are far-reaching, with the potential to significantly reduce the environmental impact of the micromobility industry. As the demand for lithium-ion batteries continues to grow, the need for sustainable and responsible recycling practices becomes increasingly important. This partnership sets a precedent for other companies in the industry to follow, and could pave the way for a more circular and sustainable supply chain.

In conclusion, Lime's partnership with Redwood Materials marks a significant step towards a more sustainable future for the micromobility industry. As companies continue to prioritize sustainability and reduce their environmental footprint, partnerships like this will play a crucial role in driving positive change and promoting a more circular economy.