Redwood Materials raises over $1B for battery recycling

Battery recycling company Redwood Materials has closed an equity round of over $1 billion to expand its recycling and materials capacity.

Why it matters: The company, founded by Tesla co-founder JB Straubel, is one of the most well-funded climate tech firms and is amassing a war chest to help the U.S. grow its domestic battery supply chain.

Details: The Series D was led by Goldman Sachs Asset Management, Capricorn's Technology Impact Fund, and funds and accounts advised by T. Rowe Price Associates.

• The round, announced by the company on Tuesday, has a post-money valuation of over $5 billion, according to multiple reports.
• The Carson City, Nevada-based company said new investors in the round included OMERS, Microsoft's Climate Innovation Fund, and Deepwater Asset Management. Existing strategic and financial investors, participated in the round.
• With this funding Redwood has raised over $2 billion in equity and has a $2 billion commitment for a loan from the Department of Energy.

Big picture: The Biden administration has been focused on using federal support to transition parts of the battery supply chain back to the U.S. and Redwood Materials is a poster child of those efforts.