Redwood Materials raises $1 billion to recycle lithium-ion batteries at scale

ImpactAlpha, Aug. 29 – Nevada-based battery recycler Redwood Materials has emerged as a key player in the U.S. supply chain for lithium-ion batteries.

In January, Redwood secured a $2 billion loan from the Department of Energy’s Loan Programs Office, led by Jigar Shah. Now comes a whopping 10-figure raise led by Goldman Sachs Asset Management, funds and accounts advised by T. Rowe Price Associates, and Capricorn’s Technology Impact Fund.

The funding brings Redwood’s total equity raised to nearly $2 billion. The Financial Times last month suggested the deal would push the battery recycler’s valuation north of $5 billion. Additional investors in the Series D round include Caterpillar, Microsoft’s Climate Innovation Fund and Deepwater Asset Management.

Anodes and cathodes

Tesla co-founder and former chief technology officer JB Straubel founded Redwood in 2017 to recycle lithium-ion batteries and produce parts for those that power electric vehicle. The company will use the funding to scale up US production of anode copper foil and cathode active materials used in batteries for electric vehicles.

Currently, US battery makers source most such components from Asia-based companies. “By lowering the cost of the critical materials for lithium-ion batteries using recycled materials, electric vehicles can become more accessible to lower income communities,” Shah wrote in February.

Technology impact

The three lead investors all backed Redwood’s 2021 Series C round. Capricorn’s technology impact funds have backed more than two dozen clean energy and electric mobility startups, including battery maker Form Energy, geothermal startup Fervo Energy, and electric airplane company Whisper Aero.

“We’ve had a front-row seat to the evolution of clean energy technology and electric mobility,” Capricorn’s Dipender Saluja said in a statement. “Redwood Materials emerges as one of the most pivotal companies in this space.”