Battery recycler Redwood Materials raises $1 billion to expand U.S. operations

Redwood Materials said on Tuesday it had raised more than $1 billion in new funding as the battery materials firm, founded by former Tesla executive JB Straubel, seeks to expand its operations in the United States.

The company in February received a conditional commitment for a $2 billion loan from the U.S. Energy Department to build a $3.5-billion recycling and re-manufacturing complex in Nevada for electric-vehicle battery materials. It also recycles batteries from consumer electronics and is planning a facility in the Charleston, South Carolina, area.

The latest funding round for Redwood, founded in 2017 by Straubel, was co-led by Goldman Sachs Asset Management, Capricorn’s Technology Impact Fund and funds advised by T. Rowe Price Associates.

“We will use our Series D funding to continue building our capacity, expanding the domestic battery supply chain and allowing our customers to purchase battery materials made in the U.S.,” Redwood said.

The Carson City, Nevada-based company has a long-term partnership with Panasonic, which builds battery cells in Nevada in a joint venture with Tesla, for providing battery materials.