Redwood Materials completes Series D investment round

Redwood Materials, Carson City, Nevada, has completed its most recent equity funding round, having raised more than $1 billion in Series D shares. The round was co-led by Goldman Sachs Asset Management, Capricorn's Technology Impact Fund and funds and accounts advised by T. Rowe Price Associates Inc. Redwood says it will use the Series D funding to continue building its capacity, expanding the domestic battery supply chain and allowing its customers to purchase battery materials made in the U.S.  

To date, Redwood has raised nearly $2 billion of equity capital along with an additional $2 billion loan commitment from the Department of Energy (DOE). Redwood has said it plans to use that conditionally approved loan commitment from the DOE to expand its battery materials recycling and production campus in McCarran, which also will allow the company to process mined virgin materials at the site.

In a post on its website announcing the closing of the investment round, the company says it is “relentlessly focused on expanding our collection of end-of-life batteries, increasing our refining capability to recover even higher quantities and harnessing their value to make the most sustainable products.”

“As the electrification megatrend continues to accelerate, building a sustainable battery materials supply chain is more important now than ever," says Sebastien Gagnon, head of Climate Transition Private Equity Investing within Goldman Sachs Asset Management. "We believe the Redwood team is well-positioned to become a leader in the battery materials industry. We look forward to working with the company in the coming years and leveraging our firm’s global platform to support Redwood’s growth, which we believe will play a central role in the ongoing energy transition.” 

In December of last year, Redwood Materials announced its intention to create a second site in South Carolina to produce battery-grade lithium, cobalt, nickel and copper. The planned site near Charleston, South Carolina, will be a 600-acre campus dedicated to the production and recycling of battery materials for electric vehicles (EVs) and other applications.

The company says many of its existing strategic and financial investors participated in this most recent round of funding along with new investors including Omers, Microsoft’s Climate Innovation Fund, Deepwater Asset Management and others.  

"Having invested in electric cars and airplanes, battery technology and power electronics for over two decades, we've had a front-row seat to the evolution of clean energy technology and electric mobility, “ says Dipender Saluja, managing partner, Capricorn Investment Group. “Redwood Materials emerges as one of the most pivotal companies in this space. Our journey with JB [Straubel, Redwood’s founder and CEO], beginning with his transformative work at Tesla, feels like it's come full circle with our investment in Redwood. Their commitment to creating a sustainable battery materials supply chain is not only an impressive continuation of that legacy but also a crucial step for our clean energy future." 

Joe Fath, portfolio manager of the T. Rowe Price Growth Stock Fund, says, “An important element of growth stock investing at T. Rowe Price involves identifying and investing early in companies with potential to reshape the future. The shift to clean energy and electric mobility undoubtedly presents such an opportunity. Redwood’s vision, leadership and execution places it at the forefront in this emerging sector. With its commitment to creating a sustainable battery materials supply chain, we believe Redwood can be a durable growth company and help catalyze the next phase of clean energy adoption and deployment.”