JB Straubel sits down with CNBC’s Phil LeBeau at Redwood Supplies.
Redwood Supplies, the battery and e-waste recycling startup based by former Tesla CTO JB Straubel, introduced Tuesday that it has closed a $1 billion funding spherical to increase operations within the U.S.
The corporate takes spent electrical automobile batteries, breaks them down, and makes use of the metals from them —together with nickel, copper, cobalt, and lithium — to supply new parts that may go into electrical automobile batteries.
One in all Redwood’s main objectives is to supply battery parts domestically to cut back a few of the world commerce and geopolitical dangers across the electrical automobile trade. Redwood additionally goals to make use of as a lot recycled materials as attainable to cut back the environmental influence the auto trade transitions from inner combustion autos to battery electrics and hybrids.
Whereas Redwood initially targeted on recycling, it additionally engages in refining and remanufacturing, and provides what it calls sustainably mined supplies into its merchandise as wanted, Straubel instructed CNBC earlier this yr.
As CNBC beforehand reported, earlier this yr Redwood locked in a $2 billion mortgage dedication from the Division of Power. It plans to make use of its funding to increase operations within the U.S. together with in and past its base in Carson Metropolis, Nevada, and has introduced plans to construct a Battery Supplies Campus exterior of Charleston, South Carolina.
U.S. Secretary of Power Jennifer M. Granholm has recognized home manufacturing of batteries and parts as one technique to meet rising demand for EVs, generate jobs and speed up a transition from fossil fuels to renewable and clear vitality.
Fossil fuels are the dominant type of vitality utilized on the planet in the present day, and account for a majority of artificial CO2 emissions and different poisonous air and particle pollution which are driving local weather change and its results, together with extra frequent, extra excessive climate occasions.
In keeping with the Power Info Administration, regardless of the rising share of electrical autos on the highway, gasoline (excluding gas ethanol) nonetheless accounted for 52% of whole vitality consumption by the U.S. transportation sector in 2022.
North America’s battery manufacturing capability is predicted to develop to almost 1,000 Gigawatt-hours per yr (or GWh/yr) by 2030 in response to analysis from Argonne Nationwide Laboratory.
For its new development funding spherical, Goldman Sachs Asset Administration, Capricorn’s Expertise Influence Fund, and different un-named funds suggested by T. Rowe Value Associates led the deal, in response to an organization assertion. The collection D spherical of fairness funding brings Redwood’s whole capital raised to almost $2 billion. OMERS, heavy gear makers Caterpillar Inc., Microsoft’s Local weather Innovation Fund and Deepwater Asset Administration additionally invested within the spherical.
