Total amount raised
$3.8 Billions
Latest funding date
9/1/2023
Location
Redwood Materials has successfully raised significant funding through multiple rounds, including a Series D, to support its mission of creating a sustainable and circular supply chain for lithium-ion batteries. The company is backed by prominent investors such as T. Rowe Price and Goldman Sachs Asset Management.
Keep reading to explore the intricacies of Redwood Materials' fundraising journey and the investors backing this innovative platform.
What Is Redwood Materials?
Redwood Materials, founded in 2017 by JB Straubel, is headquartered in Carson City, Nevada. The company specializes in battery recycling and the production of sustainable materials for electric vehicles and circular supply chains.
With a workforce of 501-1000 employees, Redwood Materials aims to create a domestic battery supply chain by recycling batteries, refining critical minerals, and remanufacturing sustainable battery materials. Their integrated process helps reduce the environmental footprint and cost of lithium-ion batteries.
Redwood Materials' mission is to make lithium-ion batteries and their energy applications more accessible, affordable, and sustainable. The company offers various services, including battery materials production, battery recycling, and hydrometallurgical metal refining.
How Much Funding Has Redwood Materials Raised?
- Seed Round
- Amount Raised: $2M
- Date: April 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the company's operations and initial development.
- Series B
- Amount Raised: $40M
- Date: August 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand battery recycling capabilities and scale operations.
- Venture Round
- Amount Raised: Not publicly disclosed
- Date: September 2020
- Lead Investors: Climate Pledge Fund
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop sustainable materials for electric vehicles.
- Series C
- Amount Raised: $775M
- Date: July 2021
- Lead Investors: T. Rowe Price
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale up production and enhance battery recycling technology.
- Corporate Round
- Amount Raised: Not publicly disclosed
- Date: September 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To strengthen corporate partnerships and expand market reach.
- Debt Financing
- Amount Raised: $2B
- Date: February 2023
- Lead Investors: US Department of Energy
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand battery materials recycling capacity.
- Series D
- Amount Raised: $1B
- Date: August 2023
- Lead Investors: Capricorn Investment Group, Goldman Sachs Asset Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To build out the U.S. supply chain and produce 100 GWh of cathode and anode components per year by 2025.
- Series D
- Amount Raised: Not publicly disclosed
- Date: September 2023
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further support the expansion of the U.S. supply chain.
Total Amount Raised: $3.817B. Current Valuation: Not publicly disclosed.
Key Investors
- T. Rowe Price
- Details: T. Rowe Price is a global investment management firm headquartered in Baltimore, Maryland. It offers a broad range of mutual funds, subadvisory services, and separate account management for individual and institutional investors.
- Investment Focus Areas: Equities, fixed income, multi-asset investments.
- Notable Investments: Technology, healthcare, financial services.
- Goldman Sachs Asset Management
- Details: Goldman Sachs Asset Management is the asset management arm of Goldman Sachs, providing investment and advisory services across a range of asset classes. It is known for its expertise in private equity, real estate, and infrastructure investments.
- Investment Focus Areas: Private equity, real estate, infrastructure.
- Notable Investments: Technology, renewable energy, infrastructure.
- US Department of Energy
- Details: The US Department of Energy (DOE) is a federal agency responsible for advancing the national, economic, and energy security of the United States. It supports scientific and technological innovation to ensure the country's energy future.
- Investment Focus Areas: Energy, infrastructure, scientific research.
- Notable Investments: Various energy and infrastructure projects across the U.S.
- Capricorn Investment Group
- Details: Capricorn Investment Group is a private investment firm founded by Jeff Skoll, the first president of eBay. The firm focuses on sustainable and impact investments.
- Investment Focus Areas: Renewable energy, technology, healthcare.
- Notable Investments: Tesla, SpaceX, QuantumScape.
- Climate Pledge Fund
- Details: The Climate Pledge Fund is a venture capital fund established by Amazon to invest in companies developing sustainable and decarbonizing technologies. It aims to support the goals of The Climate Pledge, a commitment to reach net-zero carbon by 2040.
- Investment Focus Areas: Renewable energy, sustainable materials, electric vehicles.
- Notable Investments: Rivian, ZeroAvia, Infinium.
What's Next for Redwood Materials?
Redwood Materials is poised to capitalize on the burgeoning demand for electric vehicle (EV) batteries by expanding its U.S. supply chain. With a goal to produce 100 GWh of cathode and anode components annually by 2025, the company aims to support around 1 million EVs each year. This ambitious target is bolstered by a $2 billion loan from the Department of Energy, underscoring the significant economic value Redwood can generate domestically.
Future fundraising opportunities are likely as Redwood scales its operations and enhances its recycling technologies. However, the company may face challenges such as technological hurdles and competition from other players in the battery recycling space. Regulatory issues and the need for continuous innovation will also be critical factors in Redwood's journey ahead.
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