Redwood Materials Expands into Battery Materials

Redwood Materials Expands into Battery Material Production

Redwood Materials, founded by JB Straubel, a former Tesla co-founder, is broadening its scope of operations. Initially recognized as a battery recycling company, Redwood is now focused on establishing a complete circular supply chain by manufacturing essential battery materials domestically within the United States.

New Manufacturing Facility Planned

The company is actively searching for a site to construct a new, expansive factory spanning one million square feet. This project represents a significant investment exceeding $1 billion, as reported by Bloomberg.

This facility will be dedicated to the production of both cathode and anode foils, the fundamental components of lithium-ion battery construction.

Production Capacity Goals

Redwood anticipates an initial production capacity of up to 100 gigawatt-hours (GWh) of materials annually by 2025. This output is sufficient to support the production of approximately one million electric vehicles.

Looking ahead, the company projects a substantial increase in annual battery material production to 500 GWh by 2030. This would be enough to power five million electric vehicles.

Impact on the Battery Supply Chain

Achieving these production targets would position Redwood Materials among the world’s leading materials manufacturers, many of which are currently based in Asia.

BloombergNEF estimates that consolidating the cathode supply chain within the U.S., coupled with the utilization of recycled materials, could result in a 41% reduction in emissions associated with battery-pack production.

Recycling and Sustainable Sourcing

While expanding recycling capabilities remains a priority, Redwood’s strategy extends beyond solely relying on recycled batteries.

The company intends to produce anodes and cathodes using a combination of materials recovered from recycled batteries and those sourced through sustainable mining practices.

Details regarding partnerships for this initiative are currently undisclosed, but further announcements are expected in the near future.

Recent Expansion and Funding

This expansion follows a series of strategic moves by Redwood Materials to strengthen its operational footprint.

Earlier this year, the company announced plans to triple the size of its existing 150,000-square-foot recycling facility in Carson City, Nevada.

Additionally, Redwood acquired 100 acres of land in Sparks, Nevada, near the Tesla and Panasonic Gigafactory.

A recent Series C funding round generated $700 million in investment from prominent firms, including Breakthrough Energy Ventures (Bill Gates), Amazon’s Climate Pledge Fund, Baillie Gifford, and Goldman Sachs Asset Management. This funding has elevated Redwood’s valuation to $3.7 billion.

Strategic Partnerships and Material Recovery

Redwood Materials has established recycling partnerships with key industry players, including Tesla, Amazon, Proterra (electric bus manufacturer), and Specialized Bicycle Components (electric bike producer).

The company boasts a high material recovery rate, capable of reclaiming 95-98% of critical materials from recycled batteries, such as lithium, copper, nickel, and cobalt.