Battery recycler Redwood raises just over 1 billion dollars
US battery recycling company Redwood Materials has raised more than one billion dollars from investors in its Series D financing round. That brings Redwood’s total equity raised since its inception to nearly $2 billion.
Redwood does not name the exact amount of the Series D round in its announcement, only that it is “over one billion US dollars.” The capital raised is thus significantly more than the 700 million US dollars that the Financial Times recently mentioned as the expected volume for Redwood’s new financing round.
Redwood Materials says it will use the Series D funding to further expand capacity and battery supply chain in the US and, for the first time, offer customers recycled battery materials made in America. The company does not get more specific at this point. The FT reported in July that Redwood planned to use the proceeds to finance another recycling plant in Nevada. At full capacity, that should enable battery materials production for more than one million electric cars per year.
Investors in the Series D round included Goldman Sachs Asset Management, Capricorn’s Technology Impact Fund and T. Rowe Price Associates. According to Redwood, many of its existing strategic and financial investors participated in the round. New investors include OMERS, Caterpillar Venture Capital, Microsoft’s Climate Innovation Fund and Deepwater Asset Management.
With the new influx of capital, Redwood says it has now raised nearly $2 billion in equity since its launch (including $700 million in a July 2021 funding round) and a $2 billion loan commitment from the US Department of Energy.
Redwood already has several facilities at the Tahoe Reno Industrial Center, not far from Tesla’s Gigafactory 1, where it produces, among other things, copper foil from recycled material that is supplied to Panasonic at Gigafactory 1. The company already announced in September 2021 that it would recycle old batteries and production rejects and produce new battery materials from the raw materials obtained in this way. Redwood is already building such a site, which combines recycling and battery material production, in South Carolina near Charleston – with an investment volume of 3.5 billion dollars.
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