Redwood, a company with a focus on battery materials within the circular economy, has successfully secured more than $1 billion through a Series D equity funding round. The capital raised from this financing endeavour will be strategically employed to enhance production capacity and extend the domestic supply chain. This will empower customers to acquire battery materials produced within the United States.
Nevada-based Redwood, established in 2017 by JB Straubel, a co-founder and former CTO of Tesla, operates in the collection, recycling, refining, and remanufacturing of battery materials. Its primary goal is to create a closed-loop domestic supply chain for lithium-ion batteries. The company excels in recovering 95% of critical battery components and supplies essential raw materials to U.S. battery manufacturers. Redwood’s ambitious targets include generating enough anode and cathode materials to facilitate the manufacturing of one million electric vehicles per annum by 2025, and a staggering five million EVs per year by 2030.
The Series D funding round was jointly led by Goldman Sachs Asset Management, Capricorn Investment Group’s Technology Impact Fund, and investment entities managed by T. Rowe Price. This round saw participation from both existing and new investors, including OMERS, Caterpillar Venture Capital, Microsoft’s Climate Innovation Fund, and Deepwater Asset Management.
“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.”
-Sebastien Gagnon, a Managing Director in Private Equity within Goldman Sachs Asset Management