At Redwood Materials, the recycling startup for batteries and e-waste founded by former Tesla CTO JB Straubel, a groundbreaking announcement was made. The company has successfully closed a $1 billion funding round to expand its operations in the United States. This significant investment will enable Redwood Materials to further its mission of taking spent electric vehicle batteries, breaking them down, and utilizing the valuable metals like nickel, copper, cobalt, and lithium to create new components for electric vehicle batteries.
One of the key objectives of Redwood Materials is to establish domestic production of battery components. This strategy aims to reduce the trade and geopolitical risks associated with the electric vehicle industry on a global scale. Additionally, Redwood Materials is committed to incorporating as much recycled material as possible into its products, thereby lessening the environmental impact of the automotive industry’s transition from internal combustion vehicles to electric vehicles and hybrids.
While initially focused on recycling, Redwood Materials has expanded its scope to include refining and remanufacturing. As JB Straubel explained earlier this year, the company also incorporates sustainably mined materials into its products when necessary. With its recent funding, Redwood Materials plans to expand operations throughout the United States, including a Battery Materials Campus outside of Charleston, South Carolina, in addition to its existing base in Carson City, Nevada. This expansion aligns with U.S. Secretary of Energy Jennifer M. Granholm’s emphasis on domestic battery and component production as a means to satisfy the growing demand for electric vehicles, stimulate job creation, and expedite the transition from fossil fuels to renewable and clean energy sources.
It is crucial to note that fossil fuels remain the dominant source of energy worldwide, contributing to a majority of man-made CO2 emissions and other air pollutants that drive climate change and its adverse consequences, such as intensified and more frequent extreme weather events. Despite the increasing number of electric vehicles on the road, gasoline still accounted for 52% of total energy consumption in the U.S. transportation sector in 2022, according to the Energy Information Administration.
North America’s battery manufacturing capacity is expected to reach nearly 1,000 Gigawatt-hours per year by 2030, according to research conducted by Argonne National Laboratory.
To support this new phase of growth, Redwood Materials secured a series D round of equity funding. Prominent investors such as Goldman Sachs Asset Management, Capricorn’s Technology Impact Fund, T. Rowe Price Associates, OMERS, Caterpillar Inc., Microsoft’s Climate Innovation Fund, and Deepwater Asset Management expressed their confidence in Redwood Materials’ vision by participating in this funding round. With this latest round, Redwood Materials has raised nearly $2 billion in total capital.
In conclusion, Redwood Materials’ achievement of closing a $1 billion funding round highlights the widespread recognition of the importance of sustainable battery and e-waste recycling in addressing environmental concerns and reducing reliance on fossil fuels. This investment will enable Redwood Materials to expand its operations, contribute to domestic battery component production, and advance the transition to a cleaner and more sustainable transportation industry.
[Video: U.S.-sourced EV batteries still far away, says Redwood’s JB Straubel] (Embedded video link: https://image.cnbcfm.com/api/v1/image/107192123-16759689831675968980-28127066763-1080pnbcnews.jpg?v=1675970402&w=750&h=422&vtcrop=y)
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