Redwood Materials, established in 2017 by former Tesla co-founder and CTO J.B. Straubel, is transforming the battery industry through advanced recycling and sustainable material production. Based in Carson City, Nevada, the company specializes in creating a circular supply chain for lithium-ion batteries, focusing on recovering and reprocessing critical materials from end-of-life batteries and manufacturing scrap. The company’s innovative approach helps reduce dependence on overseas supply chains while making electric vehicle batteries more sustainable and cost-effective. With an impressive recovery rate of 95% for essential battery elements, Redwood Materials is setting new standards in battery recycling and sustainable manufacturing.
Battery Technology
Redwood Materials utilizes sophisticated hydrometallurgical processes to extract and refine valuable materials from used batteries. Their technology enables the recovery of critical components including nickel, cobalt, lithium, and copper, which are then processed into high-quality materials for new battery production. The company’s manufacturing processes consume 80% less energy and generate 70% less CO2 emissions compared to traditional methods.
The company’s technical capabilities extend to producing essential battery components such as anode copper foil and cathode active materials. Their reductive calcination technology, powered by residual energy from recycled batteries, minimizes carbon emissions during processing. This integrated approach allows Redwood Materials to create a complete circular ecosystem for battery materials, from collection and recycling to refinement and remanufacturing.
By 2030, the company aims to reach a production capacity of 500 GWh, sufficient to power five million electric vehicles. Their current collection capacity exceeds 20 GWh annually, equivalent to processing materials from more than 250,000 electric vehicles. This scale demonstrates the effectiveness of their recycling and production technologies in meeting the growing demand for sustainable battery materials.
Recent Projects
In January 2024, Redwood Materials began construction on a $3.5 billion battery factory in South Carolina, designed to operate entirely on electric power without fossil fuels. This facility represents a significant expansion of their production capabilities and commitment to sustainable manufacturing.
The company also secured a $2 billion conditional loan from the U.S. Department of Energy to support the development of their Charleston, South Carolina facility. This project marks a substantial step forward in establishing a domestic battery supply chain and creating new manufacturing jobs in the United States.
Investors
Redwood Materials has attracted significant investment from leading financial institutions and strategic partners. Goldman Sachs Asset Management, Capricorn Investment Group, and T. Rowe Price Associates co-led their Series D investment round. Additional investors include the Microsoft Climate Innovation Fund, OMERS Ventures, Deepwater Asset Management, and Caterpillar.
These investments support Redwood Materials’ expansion plans and technological development, enabling the company to scale its operations and advance its mission of creating a sustainable battery supply chain.
Business Details
Location: Carson City, Nevada, USA
Website: https://redwoodmaterials.com
LinkedIn: https://www.linkedin.com/company/18161797
