$1bn for recycled battery materials
Redwood Materials in the US has raised more than $1 billion for recycled battery materials in its latest in Series D funding round.
The deal brings the total raised to $2bn and values Redwood Materials at over $5bn. The cash will be used continue building its recycling plants and staff to expand the battery supply chain in the US. The company also has a $2bn loan commitment from the US Department of Energy. The US Inflation Reduction Act (IRA) is providing significant tax credits to companies to boost the domestic battery supply chain.
The round was co-led by Goldman Sachs Asset Management, Capricorn’s Technology Impact Fund, and funds and accounts advised by T. Rowe Price Associates, which also invested in electric truck maker Rivian. Other new investors include OMERS, Caterpillar Venture Capital, Microsoft’s Climate Innovation Fund and Deepwater Asset Management.
“We are relentlessly focused on expanding our collection of end-of-life batteries, increasing our refining capability to recover higher quantities, and harnessing their value to make the most sustainable products,” said the company.
“With this additional capital, we’ll continue to assemble an industry-leading technical team, ensuring top-notch execution in sustainable battery materials production.”
The company already has a deal with Panasonic North America to supply nickel-rich cathodes for battery cell production. Panasonic is the manufacturing partner at Tesla’s Nevada battery gigafactory. Redwood, which recycles materials from the Nevada plant, was founded by a former Tesla engineer JB Straubel.
“Having invested in electric cars and airplanes, battery technology, and power electronics for over two decades, we’ve had a front-row seat to the evolution of clean energy technology and electric mobility. Redwood Materials emerges as one of the most pivotal companies in this space. Our journey with JB, beginning with his transformative work at Tesla, feels like it’s come full circle with our investment in Redwood. Their commitment to creating a sustainable battery materials supply chain is not only an impressive continuation of that legacy but also a crucial step for our clean energy future,” said Dipender Saluja, Managing Partner, Capricorn’s Technology Impact Fund.
“As the electrification megatrend continues to accelerate, building a local sustainable battery materials supply chain is more important now than ever. We believe the Redwood team is well-positioned to become a leader in the battery materials industry. We look forward to working with the company in the coming years and leveraging our firm’s global platform to support Redwood’s growth, which we believe will play an important role in the ongoing energy transition,” said Sebastien Gagnon, a Managing Director in Private Equity within Goldman Sachs Asset Management.
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