Jul 28, 2021 - Technology

Tesla co-founder raises $700 million for battery recycling startup

Illustration of the recycle symbol made out of dollar bills
Illustration: Sarah Grillo/Axios

Redwood Materials, a Reno, Nevada-based battery recycling startup founded by Tesla co-founder JB Straubel, has raised $700 million at a $3 billion pre-money valuation led by T. Rowe Price.

Why it matters: Battery supply chains are coming under pressure from growing public acceptance of electric vehicles and automaker promises to switch away from gasoline engines.

Other investors include: Goldman Sachs, Baillie Gifford, CPPIB, Fidelity, Capricorn, Breakthrough Energy Ventures, Amazon’s Climate Pledge Fund, Valor Equity Partners, Emerson Collective and Franklin Templeton.

The bottom line: Mining for nickel, cobalt and other battery materials is expensive and time-consuming, plus harmful for the environment. Redwood’s goal is to create a closed-loop supply chain for electric vehicles and energy products, harvesting metals from junked electronics, scooters, lawnmowers and, eventually, old EVs.

Editor's note: This story has been updated to include Goldman Sachs in the list of investors.

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