JB Straubel, co-founder of electric-vehicles maker Tesla, had once expressed his desire
to transform his startup into a large-scale battery recycling company.
On Wednesday, September 15, Mr Straubel's startup raised money to inch closer towards
accomplishing that mission.
Founded in 2017, Redwood Materials was started by the Tesla co-founder to invent sustainable
materials and now it aims to become one of the largest battery recycling companies in
the world.
On September 15, Redwood Materials secured US$ 700 million in a funding round, and it
will use the money to expand its existing business operations.
The Nevada-based company's Series C funding round was led and advised by T. Rowe Price
Associates and included companies like Goldman Sachs Asset Management and Fidelity among
others.
Previously, Redwood Materials had raised US$ 40 million in a Series B round and including
the seed money, Redwood Materials' total raise is reportedly around US$ 800 million.
After the latest round of funding, the company could value at US$ 3.7 billion.
What's next for Redwood Materials?
According to Mr Straubel, Redwood Materials wants to create a circular supply chain as
it would ensure smooth supply to the world's battery cell producers.
Demand for battery cells is expected to increase due to an expected boom for electric vehicles
and consumer electronics.
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Redwood's business operations include recycling scrap from battery cell production and consumer
electronics.
After this process, it extracts essential materials like lithium, nickel, and cobalt.
These materials are given back to battery producers for lithium-ion batteries.
Redwood's customers include companies like Panasonic and it has also partnered with Amazon
to recycle EV and other lithium-ion batteries.
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Aggressive expansion
To expand the business operations, the company is also planning to triple the size of its
150,000-square-foot facility by the end of this year.
Redwood Materials is reportedly expected to generate an annual output of 100 GWh of cathode
active materials and anode foil in the next four years.
If the company can achieve this annual output, then it would be sufficient to produce batteries
for one million EVs.
To progress on the path of inventing sustainable materials, Redwood will likely invest money
in large-scale projects that could improve the recycling process and increase efficiency.
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Bottom line
At the current moment, Redwood Materials stock is not available as it is a privately held
company.
However, after the latest round of funding, potential investors are searching for the
Redwood Materials stock and the company is gaining a lot of attention.
If the company needs more money in future for further expanding the business operations,
Redwood Materials could take the IPO route to raise money.
Founded in 2017, Redwood Materials was started by Tesla co-founder JB Straubel to invent
sustainable materials.Potential investors are searching for the Redwood Materials stock
and the company is gaining a lot of attention.Redwood Materials is planning to triple the size of
its 150,000-square-foot facility by the end of this year.After the rise of trading platforms
of brokerage companies, retail investors now have a better chance of grabbing the pre-IPO
shares.
If the Redwood Materials’ IPO happens, interested investors could get them through trading platforms
or stockbrokers.After the rise of trading platforms of brokerage companies, retail investors
now have a better chance of grabbing the pre-IPO shares.
If the Redwood Materials’ IPO happens, interested investors could get them through trading platforms
or stockbrokers.