Back in September 2021, Ford announced that it was teaming up with Redwood Materials – a leading battery materials company – to create a battery recycling and domestic battery supply chain for electric vehicles. Just a few months later, The Blue Oval began shipping hybrid and EV batteries to Redwood to kick off those efforts, and since then, that same company has announced plans to build a new battery recycling plant in Nevada and erect a campus in South Carolina. Fresh off receiving a $2 billion dollar loan from the Department of Energy, Redwood Materials recently announced that it has collected 1,268 lithium-ion and nickel metal hydride (NiMH) vehicle batteries thus far, but that’s only the beginning of what figures to be a rapid expansion. Now, those efforts have received yet another big boost as Redwood Materials just announced that it has raised another $1 billion from investors.
This rather large infusion of funds comes from a Series D investment equity funding round, which was spearheaded by Goldman Sachs Asset Management, Capricorn’s Technology Impact Fund, and funds and accounts advised by T. Rowe Price Associates, Inc. It also means that Redwood Materials has raised around $2 billion in equity capital to date, a figure that doesn’t include the aforementioned DOE loan.
This latest round of Series D funding will be used to help expand Redwood’s capacity and its domestic battery supply chain, build an industry-leading technical team, and enable customers to purchase battery materials made in the U.S. for the very first time.
“As the electrification megatrend continues to accelerate, building a local sustainable battery materials supply chain is more important now than ever,” said Sebastien Gagnon, a Managing Director in Private Equity 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 an important role in the ongoing energy transition.”
We’ll have more on Redwood Materials soon, so be sure and subscribe to Ford Authority for ongoing Ford news coverage.
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