[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Mith & Abe [@Mith_](/creator/twitter/Mith_) on x 1687 followers Created: 2025-07-20 22:44:19 UTC With the renewed interest in LFP due to the recent export ban from China on the technology to produce LFP CAM, and with Tesla preparing to bring its LFP production facility at the Nevada Gigafactory online, I have been receiving questions about LFP production scrap, specifically whether Tesla will have a third party process it. Tesla began developing its in house lithium ion recycling system around 2019 and brought it online in 2022 at limited commercial scale. As of their most recent impact statement, Tesla reports processing about XXX GWh of material in house. From the lack of manganese in the data, this appears to be only the NCA chemistry produced at the same site by Panasonic. Around XXX GWh is handled by external recyclers. Redwood Materials, via a Panasonic partnership, is the most logical assumption. Redwood is not yet producing battery grade metals. The company currently outputs mixed metal sulfates from the transition metals and lithium sulfate monohydrate. These intermediates are believed to be sent back to Tesla for final refining to battery grade. Two other recyclers in very close proximity are Aqua Metals and American Battery Technology Company (ABAT). Aqua Metals operates at pilot scale and remains an R&D project. ABAT is processing to black mass and lithium intermediate stage but is not yet producing battery grade materials. While the same equipment can theoretically handle both NCA and LFP, it is not practical to run them together. The recovery processes for the two chemistries are specific. When LFP material enters a system optimized for NCA, the iron and phosphate act as impurities, increasing the cost of nickel, cobalt, and, if it is present, manganese recovery. This is why systems are either run in batches or have dedicated parallel trains. An LFP line or batch would focus on lithium recovery and collective precipitation of iron phosphate. A high nickel line or run would be optimized for the recovery of nickel, cobalt, manganese, and, if the system doesn’t have an ESLR component, the lithium. Tesla is reportedly targeting XX GWh of LFP cell output at the Nevada facility to support the Lathrop Megapack site. Initial production often sees scrap rates up to 10%, implying as much as X GWh of scrap early on. This is expected to fall to around X GWh as the line is optimized and brought into nominal operating parameters. This is CATL equipment, which is a quantified platform. As such, the time needed to reach optimal production capacity with minimal waste and quality rejects is much shorter. Tesla has installed the LFP production infrastructure, but there is no confirmation of a dedicated LFP recycling platform. Given the current focus on production and the availability of external recyclers nearby, it is unlikely to be a priority for Tesla in the short term. Scrap will likely be sent to Redwood, the most established local option. ABAT could be a viable partner in the future. Its system recovers lithium before black mass creation, which simplifies the process for LFP and could offer a faster and more cost effective route. Even at X GWh, a dedicated post black mass train would be financially viable. As for Aqua Metals, with the recent sale of the location they planned to use for commercial scale operations, they can now only handle a fraction of the scrap Tesla could produce. Below is a drone photo taken above the ABAT lithium-ion recycling facility and the red arrow marks the Tesla Gigafactory. Redwood is located farther down the road, off to the right about X miles. There was no clear line of sight to their facility, so I was never able to get usable drone footage of that location. Also included is a video I recorded during a drive from an empty lot owned by ABAT, which they now reportedly use for trailer storage and likely short term feedstock staging. The video shows the route from Tesla’s rear security gate to the ABAT facility.  XXXXX engagements  **Related Topics** [ion](/topic/ion) [stocks technology](/topic/stocks-technology) [china](/topic/china) [mith](/topic/mith) [tesla](/topic/tesla) [stocks consumer cyclical](/topic/stocks-consumer-cyclical) [stocks bitcoin treasuries](/topic/stocks-bitcoin-treasuries) [Post Link](https://x.com/Mith_/status/1947065059789934708)
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Mith & Abe @Mith_ on x 1687 followers
Created: 2025-07-20 22:44:19 UTC
With the renewed interest in LFP due to the recent export ban from China on the technology to produce LFP CAM, and with Tesla preparing to bring its LFP production facility at the Nevada Gigafactory online, I have been receiving questions about LFP production scrap, specifically whether Tesla will have a third party process it.
Tesla began developing its in house lithium ion recycling system around 2019 and brought it online in 2022 at limited commercial scale. As of their most recent impact statement, Tesla reports processing about XXX GWh of material in house. From the lack of manganese in the data, this appears to be only the NCA chemistry produced at the same site by Panasonic. Around XXX GWh is handled by external recyclers. Redwood Materials, via a Panasonic partnership, is the most logical assumption.
Redwood is not yet producing battery grade metals. The company currently outputs mixed metal sulfates from the transition metals and lithium sulfate monohydrate. These intermediates are believed to be sent back to Tesla for final refining to battery grade. Two other recyclers in very close proximity are Aqua Metals and American Battery Technology Company (ABAT). Aqua Metals operates at pilot scale and remains an R&D project. ABAT is processing to black mass and lithium intermediate stage but is not yet producing battery grade materials.
While the same equipment can theoretically handle both NCA and LFP, it is not practical to run them together. The recovery processes for the two chemistries are specific. When LFP material enters a system optimized for NCA, the iron and phosphate act as impurities, increasing the cost of nickel, cobalt, and, if it is present, manganese recovery.
This is why systems are either run in batches or have dedicated parallel trains. An LFP line or batch would focus on lithium recovery and collective precipitation of iron phosphate. A high nickel line or run would be optimized for the recovery of nickel, cobalt, manganese, and, if the system doesn’t have an ESLR component, the lithium.
Tesla is reportedly targeting XX GWh of LFP cell output at the Nevada facility to support the Lathrop Megapack site. Initial production often sees scrap rates up to 10%, implying as much as X GWh of scrap early on. This is expected to fall to around X GWh as the line is optimized and brought into nominal operating parameters. This is CATL equipment, which is a quantified platform. As such, the time needed to reach optimal production capacity with minimal waste and quality rejects is much shorter.
Tesla has installed the LFP production infrastructure, but there is no confirmation of a dedicated LFP recycling platform. Given the current focus on production and the availability of external recyclers nearby, it is unlikely to be a priority for Tesla in the short term.
Scrap will likely be sent to Redwood, the most established local option. ABAT could be a viable partner in the future. Its system recovers lithium before black mass creation, which simplifies the process for LFP and could offer a faster and more cost effective route. Even at X GWh, a dedicated post black mass train would be financially viable.
As for Aqua Metals, with the recent sale of the location they planned to use for commercial scale operations, they can now only handle a fraction of the scrap Tesla could produce.
Below is a drone photo taken above the ABAT lithium-ion recycling facility and the red arrow marks the Tesla Gigafactory. Redwood is located farther down the road, off to the right about X miles. There was no clear line of sight to their facility, so I was never able to get usable drone footage of that location.
Also included is a video I recorded during a drive from an empty lot owned by ABAT, which they now reportedly use for trailer storage and likely short term feedstock staging. The video shows the route from Tesla’s rear security gate to the ABAT facility.
XXXXX engagements
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