That's part of it. Yet there is a growing gwh of EV batteries that gets retired on a yearly basis. Which is what Redwood has been tapping into. There is also a

That's part of it. Yet there is a growing gwh of EV batteries that gets retired on a yearly basis. Which is what Redwood has been tapping into. There is also a certain amount of cells that don't make it past the quality gates in the factory that get recycled via them. Also people forget how quickly EVs have grown. The Tesla Model 3 came out in 2017; that's eight years ago. That was pretty much the first mass market EV that got produced by the hundreds of thousands per year. It had eight years of battery warranty. Most EVs you see on the road were produced after 2017 and typically come with similar warranty. The simple reality is that the vast majority of EV batteries ever produced is still under it's factory warranty and nowhere near its warranty life time. The amount of gwh of battery that becomes available for companies like Redwood is fairly predictable as it is tied to the production volume 8-15 years ago. Redwood is basically tapping into the growing number of cars that get scrapped early because of accidents or other failures. That's a smallish percentage of overall vehicles produced but at the rate EVs started getting produced around eight years ago, it's starting to add up to a few gwh of battery per year. It's not a lot yet but it's not that unpredictable. And it's not nothing. If you manufacturer new batteries at 80$/kwh, producing 1 gwh new would cost about 80M$. So giving batteries a second life has quite a bit of economic value. The issue for Redwood is probably more that competition for these batteries is quite fierce. There is a lot of valuable stuff you can do with these things and lots of companies eagerly looking to pick up second hand EVs for their batteries.