Redwood Materials Expands Near Tesla Gigafactory

Redwood Materials Expands Nevada Operations

Redwood Materials, a battery recycling company established by JB Straubel, formerly the Chief Technology Officer of Tesla, has acquired 100 acres of land in Sparks, Nevada. This purchase is situated near the Gigafactory jointly operated by Panasonic and Tesla.

Expansion Driven by EV Adoption and Supply Chain Goals

This land acquisition is a key component of Redwood’s expansion strategy. It directly supports the Biden Administration’s initiatives to accelerate the adoption of electric vehicles and strengthen domestic battery recycling and supply chain capabilities.

Facility Growth and Increased Capacity

In addition to the land purchase, Redwood Materials is significantly expanding its existing facility. The current 150,000-square-foot plant in Carson City, Nevada, will be nearly tripled in size with an additional 400,000 square feet.

Operations at the expanded Carson City facility are anticipated to commence before the year’s end.

Job Creation and Workforce Expansion

The company’s growth plans include substantial hiring. Currently employing 130 individuals, Redwood Materials projects the addition of over 500 jobs within the next two years.

Alignment with National Battery Supply Chain Strategy

Redwood’s announcement follows a comprehensive 100-day review of the U.S. supply chain conducted by the Biden Administration. A Department of Energy document outlining a plan to enhance the domestic supply chain for lithium-based batteries was also recently released.

Energy Secretary Highlights Economic Opportunity

Energy Secretary Jennifer M. Granholm emphasized the potential for the U.S. to rebuild its domestic supply chain and manufacturing sectors. She stated that this would allow the nation to fully benefit from the growing $23 trillion global clean energy economy.

Granholm noted that private sector investments, such as Redwood’s expansion, demonstrate the need for continued momentum. The American Jobs Plan is expected to unlock significant opportunities for U.S. businesses and create clean energy jobs.

Creating a Circular Battery Supply Chain

Founded in 2017, Redwood Materials is focused on establishing a circular supply chain for battery materials. The company operates on a business-to-business model.

Redwood recycles both scrap generated during battery cell production and materials from consumer electronics, including cell phone batteries, laptops, power tools, power banks, scooters, and electric bicycles.

Material Recovery and Customer Base

The company sources scrap from consumer electronics firms and battery cell manufacturers like Panasonic. Discarded materials are processed to extract valuable elements like cobalt, nickel, and lithium.

These recovered materials are then supplied back to Panasonic and other customers, aiming to create a closed-loop system. This system is designed to lower battery costs and reduce reliance on mining.

Redwood Materials currently lists Panasonic, Amazon, and AESC Envision in Tennessee as publicly disclosed customers.

High Recovery Rates and Processing Volume

Redwood Materials reports recovering approximately 95% to 98% of the elements contained within batteries, such as nickel, cobalt, lithium, and copper.

The company currently processes 3 gigawatt-hours of battery materials annually, equivalent to approximately 45,000 electric vehicles.