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In talks to raise $700 million, JB Straubel’s battery recycling start-up, Redwood Materials, is seeking a valuation of nearly $5 billion. This funding will support the construction of their first major plant in Nevada.
Redwood Materials, established by Straubel in 2017, aims to revolutionize the supply chain for electric vehicles by recycling battery materials and reducing the need for mining minerals used in the industry.
Backed by major investors such as T Rowe Price, Baillie Gifford, and Fidelity, Redwood plans to include its existing investors in the new fundraising round.
In addition to securing a $2 billion loan from the US Department of Energy earlier this year, Redwood’s latest fundraising efforts will help finance the development of a battery recycling facility near Reno, Nevada. This facility will convert end-of-life batteries and production scrap into critical materials for electric vehicles.
At full capacity, the plant is expected to support the production of over 1 million electric vehicles annually, aligning with President Biden’s goal of transitioning the US to renewable energy.
While the new fundraising round has yet to be finalized, sources familiar with the matter indicate that the discussions are advanced. Redwood Materials declined to comment.
Straubel, known for co-founding Tesla in 2004 and serving as its Chief Technology Officer, will be utilizing his expertise and experience in the battery recycling space. He recently joined Tesla’s board.