Battery recycling is key to making electric vehicles sustainable, and Redwood Materials, a company founded by Tesla co-founder JB Straubel, is a leader in the space.

Today, the company announced a $700 million capital raise to accelerate its effort.

Redwood Materials is a Nevada-based company that is developing new processes to recycle materials with a focus on electric car batteries.

It was founded by JB Straubel, an early founding member of Tesla and the company’s longtime chief technology officer until he left in 2019 to focus on the startup.

Last year, the company came out of stealth mode and revealed more about its operations — including the fact that it is testing its recycling process with scrap from Panasonic’s operations at Gigafactory Nevada.

Redwood also received backing from Amazon and added Envision AESC, which manufactures batteries for the Nissan LEAF, as a client.

Today, the company secured a significant series C funding round worth $700 million:

“Today, Redwood is announcing a more than $700M external investment from a carefully selected group of strategic investors who understand the mission and value of what Redwood is working to achieve. The round was led by funds and accounts advised by T. Rowe Price Associates, Inc. and including Goldman Sachs Asset Management, Baillie Gifford, Canada Pension Plan Investment Board, and Fidelity. In addition, all Series B investors, Capricorn’s Technology Impact Fund, Breakthrough Energy Ventures and Amazon’s Climate Pledge Fund, returned for this round and Valor Equity Partners, Emerson Collective, and Franklin Templeton also participated.”

Several of these firms, including T.Rowe Price and Baillie Gifford, have also backed Tesla.

Straubel commented on the announcement:

“With this capital, Redwood will be able to accelerate our mission to make battery materials sustainable and affordable, accomplishing the change we need in the world with a circular economy. We’re grateful for these strategic investors who bring decades of experience investing in and supporting companies that build transformative technology and who understand the mission and value of what Redwood is working to achieve.” 

Redwood is currently tripling the size of its Carson City facilities, and it is looking to add 500 jobs as it develops its recycling technology.

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