Tesla Co-Founder JB Straubel's Redwood Materials Raises $700 Million

Tesla co-founder JB Straubel who for the longest time was its chief technology officer founded a company called Redwood Materials which works on recycling EV batteries. This startup has now raised $700 million. 

"Today, Redwood is announcing a more than $700M external investment from a carefully selected group of strategic investors who understand the mission and value of what Redwood is working to achieve. The round was led by funds and accounts advised by T. Rowe Price Associates, Inc. and including Goldman Sachs Asset Management, Baillie Gifford, Canada Pension Plan Investment Board, and Fidelity. In addition, all Series B investors, Capricorn's Technology Impact Fund, Breakthrough Energy Ventures and Amazon's Climate Pledge Fund, returned for this round and Valor Equity Partners, Emerson Collective, and Franklin Templeton also participated, "Straubel said announcing the funding. 

Redwood Materials is developing a new process to recycle materials for electric car batteries making them more sustainable. JB Straubel left Tesla in 2019 to focus on his startup. His company emerged from stealth mode in 2020. It revealed that it was testing its recycling process using the scrap from Panasonic's operations at the Tesla Gigafactory in Nevada. 

Straubel has been working on reinventing battery recycling

Redwood Materials has the backing of Amazon and Envision AESC which manufactures batteries for the Nissan Leaf EV. 

"With this capital, Redwood will be able to accelerate our mission to make battery materials sustainable and affordable, accomplishing the change we need in the world with a circular economy. We're grateful for these strategic investors who bring decades of experience investing in and supporting companies that build transformative technology and who understand the mission and value of what Redwood is working to achieve," he added. 

Redwood Materials is currently in the process of doubling its facilities in Carson City and is looking at adding over 500 jobs.