Startup Redwood Materials is partnering with Ford and Volvo in an effort to recycle electric vehicle (EV) batteries.

As the move to EVs picks up the pace, one of the biggest challenges is manufacturing new EV batteries, as well as recycling and disposal of old ones. Given the amount of rare-Earth metals in EV batteries, efficient recycling can significantly reduce production costs. Multiple companies are working the problem, including other car manufacturers, such as Nissan.

Redwood Materials is a US-based startup that is the latest to tackle the issue, in partnership with Ford and Volvo. Beginning in California, the companies are establishing “the most comprehensive electric vehicle battery recycling program.” The program will accept all lithium-ion (Li-ion) and nickel metal hydride (NiMH) batteries in California.

“We will work directly with dealers and dismantlers in California to identify and recover end-of-life packs,” the company says in a statement. “Redwood will then safely package, transport, and recycle these batteries at our facilities in neighboring Northern Nevada, and then return high quality, recycled materials back into domestic cell production. Overtime, as EOL packs scale, we expect these batteries to become valuable assets that will help make EVs more sustainable and affordable.”

Redwood makes it clear the company welcomes other automakers to join its program and partner with it.