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Addressing the Global Battery Supply Chain Challenge
The global demand for batteries, especially for electric vehicles, has spotlighted the need for a robust and sustainable supply chain. Currently, a significant portion of battery materials is sourced or produced in China, leaving other regions, including the U.S., dependent on imports. Redwood Materials, an innovative startup, is set to change this narrative.
Redwood’s Vision: A Sustainable and Domestic Battery Supply Chain
Founded by former Tesla Co-Founder and CTO JB Straubel, Redwood Materials has successfully raised over $1 billion in a Series D funding round, achieving a post-money valuation exceeding $5 billion. The company’s primary objective is to establish a domestic battery supply chain, enabling customers to purchase battery materials, such as lithium, nickel, and cobalt, produced within the U.S.
Strategic Expansion and Production Plans
Redwood Materials is actively working on establishing factories within the U.S. to ensure a closed-loop supply chain. The company’s 175-acre facility in Sparks, Nevada, is set to produce anode copper foil. Furthermore, a 600-acre facility in Charleston, South Carolina, is in the pipeline, aiming to remanufacture both the cathode and anode copper foil. Redwood’s ambitious goal is to achieve an annual production capacity of 100 gigawatt-hours by 2025, sufficient to power approximately 1 million electric vehicles.
Collaborations and Partnerships
Redwood Materials has fostered a strategic partnership with Panasonic, which supplies batteries to Tesla’s Nevada gigafactory. As part of this collaboration, Panasonic will be the first customer for Redwood’s copper foil production. The partnership traces back to 2019 when Redwood began recycling Panasonic’s manufacturing scrap from the Tesla gigafactory.
Investors and Funding Details
The Series D funding round witnessed participation from prominent investors, including Goldman Sachs Asset Management, Capricorn’s Technology Impact Fund, and T. Rowe Price Associates. New investors, such as OMERS, Microsoft Climate Innovation Fund, and Deepwater Asset Management, also contributed to the round.
Redwood Materials’ recent funding underscores the industry’s confidence in the company’s vision to reshape the battery supply chain. With a focus on sustainability and domestic production, Redwood Materials is poised to play a pivotal role in the future of battery manufacturing and supply.
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