Redwood Materials, the battery materials and recycling startup founded by former Tesla co-founder JB Straubel, has announced its acquisition of European lithium-ion battery recycler, Redux Recycling. This acquisition marks Redwood’s second purchase since its inception in 2017, with the company’s previous acquisition being a small UK recycling technology firm. The terms of both acquisitions have not been disclosed; however, Redwood stated that approximately 70 technical staff, including chemical engineers, metallurgists, and material scientists, will join its existing European team.
Key Takeaway
Redwood Materials, the battery materials and recycling startup, has acquired European lithium-ion battery recycler Redux Recycling, as part of its expansion into the European market. This marks Redwood’s second acquisition since its founding and strengthens its position as one of the leading battery materials and recycling companies globally. The acquisition provides Redwood with the capability to transport, recycle, and refine electric vehicle batteries from across Europe, supporting the company’s commitment to building a sustainable supply chain for electric vehicles.
Expansion and Fundraising Success
In recent times, Redwood Materials has experienced significant growth and fundraising success. In August, the company raised over $1 billion in a Series D funding round, valuing the company at over $5 billion. This latest funding round brings Redwood’s total equity capital to $2 billion. Additionally, the company secured a conditional commitment for a $2 billion loan from the Department of Energy in February 2022, as part of the Biden administration’s efforts to strengthen the US EV supply chain. The financing will be provided to Redwood in various stages to support its growth and the expansion of its headquarters in Nevada.
Strategic Expansion into Europe
Redwood Materials made its initial foray into the European market last year, as part of its global ambitions to become one of the leading battery materials and recycling companies globally. The acquisition of Redux Recycling further solidifies this expansion. Redux operates a facility in Bremerhaven, Germany, strategically located near one of the largest import ports for vehicles in the country. The facility has the capacity to process up to 10,000 tonnes of batteries annually, including those from electric vehicles, e-bikes, stationary storage systems, and consumer devices such as cell phones and laptops.
The acquisition of Redux Recycling provides Redwood Materials with the ability to transport, recycle, and refine electric vehicle packs and batteries from across Europe. This move aligns with the company’s commitment to building a sustainable supply chain for electric vehicles and supporting the adoption of clean energy technology.
