Goldman Sachs co-leads over $1 billion investment in unicorn startup Redwood Materials to expand its US operations

Redwood Materials, a sustainable battery startup founded by former Tesla executive JB Straubel, has raised more than $1 billion in a Series D funding to expand its operations in the United States. The round was co-led by Goldman Sachs Asset Management, Capricorn’s Technology Impact Fund, and funds advised by T. Rowe Price Associates.

The latest funding news comes about six months after the unicorn startup received a conditional commitment for a $2 billion loan in February from the U.S. Department of Energy (DOE) to build a $3.5-billion recycling and re-manufacturing complex in Nevada for electric-vehicle battery materials.

With billions in its war chest, the unicorn startup plans to accelerate its growth and build new battery recycling and manufacturing facilities in the United States. Redwood Materials currently operates a battery recycling facility in Nevada and is also planning to build a new facility in California.

In a statement, Redwood said: “We will use our Series D funding to continue building our capacity, expanding the domestic battery supply chain and allowing our customers to purchase battery materials made in the US.”

Founded in 2017 by CEO and former Tesla CTO JB Straubel, Redwood Materials develops technologies to increase the use of recycled and sustainable materials in global supply chains. The company recycles battery materials like lithium to reduce the need for mining. Its battery recycling recovers and refines materials from end-of-life batteries. Redwood’s products are also used to make new batteries, which helps to reduce the environmental impact of electric vehicles.

The funding from this round is a major vote of confidence in Redwood Materials and its mission to create a more sustainable battery supply chain. The company is well-positioned to capitalize on the growing demand for electric vehicles, and its expansion plans will help to ensure that the United States has a strong domestic battery supply chain.

Commenting on the funding, Straubel said: “This funding will help us accelerate our growth plans and build the infrastructure needed to support the transition to electric vehicles. We are grateful for the support of our investors, who share our vision for a more sustainable future.”

“We are excited to support Redwood Materials in its mission to create a more sustainable battery supply chain. The company’s innovative approach to battery recycling has the potential to make a significant impact on the environment,” George Serafeim, Global Head of Sustainable Investing at Goldman Sachs Asset Management said.

Peter Sims, Managing Director of Capricorn’s Technology Impact Fund, said: “Redwood Materials is a leading player in the battery recycling space, and we believe that the company has the potential to make a major impact on the environment. We are excited to support Redwood Materials in its growth journey.”

Scott Bessent, Chief Investment Officer of T. Rowe Price Associates, said: “We are impressed with Redwood Materials’ team and its technology. We believe that the company is well-positioned to capitalize on the growing demand for electric vehicles.”

The funding for Redwood Materials is a sign of the growing interest in sustainable battery technologies. The company is well-positioned to play a leading role in the transition to electric vehicles, and its expansion plans will help to ensure that the United States has a strong domestic battery supply chain.

Redwood Materials has a long-term partnership with Panasonic, a Japanese company that builds battery cells in Nevada in a joint venture with Tesla. Redwood Materials provides battery materials to Panasonic, including recycled cathode material and anode copper foil.