Redwood Materials, a battery recycling start-up established by Tesla co-founder JB Straubel, is in advanced discussions to secure $700 million in funding. This would value the company at almost $5 billion and support the development of its inaugural large-scale facility in Nevada.
Founded in 2017, Redwood Materials seeks to revolutionize the supply chain for electric vehicles (EVs) by recycling the components of batteries and curbing the need for additional mineral mining. The start-up has attracted significant investment from asset managers such as T Rowe Price, Baillie Gifford, and Fidelity, who are anticipated to participate in the latest funding round, reports the Financial Times.
Following its $700 million funding round in 2021, which valued the firm at $3.7 billion, Redwood was conditionally pledged a $2 billion loan from the U.S. Department of Energy this year. Like the loan, the latest fundraising venture will contribute to the establishment of a battery recycling facility near Reno, Nevada. This facility is designed to transform end-of-life batteries and production waste into critical materials for EVs.
The proposed plant, when at full capacity, is projected to generate enough materials to support the manufacturing of over a million EVs per year. This comes as the U.S. EV market is expanding, and President Joe Biden seeks to hasten the nation’s shift towards renewable energy.
Though the fundraising deal has yet to be finalized, people familiar with the situation suggest the discussions are well underway. With electric cars gaining in popularity, battery recycling is key for reclaiming minerals to be reused once again.
