Redwood Materials Gets $1 Billion In Fresh Funding To Grow EV Battery Recycling Business

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Redwood Materials has now raised almost $2 billion in equity capital and also secured a $2 billion loan commitment from the Department of Energy

has raised $1 billion in Series D shares that it says it will use to build up its recycling capacity and to expand the battery supply chain in the United States.chief technology officer JB Straubel, confirmed plans to establish a $3.5 billion facility in Charleston, South Carolina late last year to recycle, refine, and manufacture anode and cathode components for automotive batteries.

Redwood’s latest funding round was co-led by Goldman Sachs Asset Management, Capricorn’s Technology Impact Fund, and funds and accounts advised by T. Rowe Price Associates. To date, Redwood has raised nearly $2 billion of equity capital.“As the electrification megatrend continues to accelerate, building a local sustainable battery materials supply chain is more important now than ever,” said Goldman Sachs Asset Management Private Equity managing director Sebastien Gagnon.

The facility in Nevada operated by Redwood takes end-of-life batteries from EVs and automotive production scrap and processes them to produce raw materials that can be used to make new EV battery cells. While speaking withearlier this year shortly after Redwood received its $2 billion loan commitment from the Department of Energy, Straubel said the company is in competition with Asia when it comes to battery recycling.

“These are very capital-intensive projects, and we’re in a competition with Asia to ramp this up and to bring these supply chains and manufacturing operations back to the US,” he said. “The US battery demand and EV demand is growing… but we have a long way before that supply chain is predominantly moved to the US.”

 

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