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With New $1B Raise, Redwood Is the Most Promising Company in Battery Tech
Redwood Materials, Venture Portfolio
There is a race for US battery component suppliers to build capacity to meet the growing needs of automakers in the move to electrification. Redwood Materials is emerging as the most promising company in battery tech for three reasons: First, it's the only company building a closed-loop battery materials supply chain in the US. Second, it has the capital to build that vision with a balance sheet that recently added $1B. Third, Redwood's leadership team includes some of the brightest minds in battery tech.

Key Takeaways

A closed-loop battery materials supply chain means Redwood recycles, refines and remanufactures battery components. This makes it the most promising battery tech company.
Redwood’s $1B raise is an important step forward because it will allow the company to fund the construction of two battery material campuses.
Redwood has the leadership to build a foundational tech company. They’ve done it in the past.

The Redwood Approach

Redwood describes their business as combining “recycling, refining and remanufacturing to produce and return battery materials to US battery cell manufacturers.” Their goal is to convert the current global battery logistics mess into a vertically-integrated process within the US. Redwood is completing an aggressive year of construction in Nevada and will break ground on a new campus in Charleston, SC later this year. Thus begins what is likely to be five years of investments aimed at a more efficient, localized approach to battery production.

The Redwood approach is yielding results. They are currently recycling and refining lithium-ion batteries. Additionally, in December, the company began producing and selling anode copper foil to customers including Panasonic. And Redwood recently started up their first pilot cathode active material facility.


Redwood's $1B Series D

Redwood recently announced the completion of a $1B Series D round of financing led by Goldman Sachs Asset Management, Capricorn’s Impact Fund, T. Rowe Price Associates. This brings the company’s post-money valuation to approximately $5.3B. Deepwater also participated in the round.

This marks one of the largest equity raises in battery tech in a challenging fundraising environment.

Redwood has now raised $4B in capital, which includes a $2B Department of Energy loan commitment that was secured earlier this year. The loan will help fund the completion of its Sparks, Nevada campus, which should be complete by early 2024, and fund construction of the Charleston, SC campus that will break ground in late 2023.

The financing required to get these two campuses up and running to meet the battery component demand from Redwood’s 14 OEM customers is now in place.


The Team

JB Straubel was one of the Tesla co-founders and, in 2017, started Redwood Materials. JB is one of the most knowledgeable people in the world when it comes to battery tech and was recently nominated to Tesla’s Board.

Colin Campbell recently joined as Redwood’s CTO. Previously, Campbell spent 17 years at Tesla where he was head of powertrain development.

Kevin Kassekert serves as Redwood’s COO. Previously, Kassekert spent 7 years at Tesla as VP People & Places and VP Infrastructure Operations.

Jason Thompson is the CFO. Previously, Thompson spent 4 years as Treasurer for Valvoline. Before that he spent six years with Ashland, a global specialty chemical manufacturer, where he led the spin-out of Valvoline and its IPO. Jason is wicked smart, as evidenced by his work with the National Security Agency as a language and intelligence analyst.


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