Redwood Materials gets $2B U.S. loan to make electric car battery parts
Redwood Materials has received a $2 billion U.S. Department of Energy loan to begin domestic production of critical battery components for electric vehicles (EVs).
Why it matters: The loan is another lever, in addition to lucrative tax credits for battery manufacturers, that the Biden administration is pulling to jump-start a U.S. supply chain for EVs.
Details: Redwood intends to make lithium-ion battery anodes and cathodes — which make up nearly 80% of the cells' cost — at new plants in Nevada and South Carolina.
- Despite huge recent investments in U.S. battery production, those critical components are still made almost entirely in China.
- Redwood says the new plants will create 3,400 construction jobs and hire 1,600 full-time employees.
- The plants will eventually produce enough materials to power 1 million EVs, Redwood says.
Of note: Redwood CEO J.B. Straubel was a co-founder of Tesla, which benefited from the same DOE loan program in its early years.
The bottom line: Producing critical battery components in the U.S. could help drive down EV costs, create jobs and reduce the country's dependence on China.
Editor's note: This story has been corrected to show that Redwood Materials is building a plant in South Carolina, not Kansas.