Redwood’s balance sheet got a boost with the DOE’s $2B loan to fund the construction of multiple facilities producing battery materials in the US.
The money will be drawn in tranches over the next 3-5 years as Redwood builds battery recycling and manufacturing campuses in Nevada and South Carolina for anode and cathode materials.
Redwood is the recipient of the second largest battery manufacturing loan from the DOE, behind the $2.5B loan that Ultium Cells received last year.
An important added benefit to the DOE loan is that it should unlock additional equity investment in the company. The road to a US-based battery supply chain will require many billions of dollars, which will need to come from both public and private sources.