Toyota Motor Corporation ( TM ) shares are trading higher on Wednesday.

The company revealed a $4.5 million funding grant from the U.S. Department of Energy’s Advanced Research Projects Agency-Energy.

The funding, part of the Catalyzing Innovative Research for CIRCULAR Program, aims to support the development of a sustainable circular supply chain for electric vehicle batteries.

Toyota Engineering & Manufacturing North America, Inc., in collaboration with Oak Ridge National Laboratory, National Renewable Energy Laboratory, and Baker Hughes’ Waygate Technologies, will lead the project.

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This initiative, titled Development of an Autonomous Robotic Disassembly Process for Applications in Battery Pack Circularity, is focused on addressing the key bottlenecks in the battery supply chain, such as automating battery pack disassembly, improving battery classification, and mitigating cell degradation.

The project aims to create a 3R (Reduce, Reuse, Recycle) framework for end-of-life batteries. It will develop automated tools and protocols for disassembling battery packs, diagnosing battery cells, and repurposing these cells into new energy systems. The innovations will help streamline the reuse and refurbishment of valuable battery components, reducing waste and extending battery life.

This collaboration represents a significant step forward in Toyota’s commitment to sustainability, helping to create a more circular battery supply chain.

The project aligns with the company’s broader efforts to reduce battery waste, enhance battery lifecycle management, and support the energy transition.

As the demand for EVs grows, this initiative will help ensure that batteries are reused efficiently, minimizing their environmental impact and maximizing their lifespan.

Price Action: TM shares are trading higher by 3.44% to $179.24 at last check Wednesday.