Redwood, Tesla’s Former CTO’s Startup Has Raised 1 Billion

Big Tech companies have always been a training ground for employees who decide to leave and launch their own startups. In 2017 J. B. Straubel, for more than a decade Tesla’s CTO, founded Redwood to try to solve one of the most important problems related to the electric mobility industry. We are talking about the recycling of batteries not only from cars but also from devices such as smartphones and tablets that we use every day.

His startup just closed its Series D round by raising $1 billion with the goal of expansion into the U.S. market. The company is classified as a unicorn (its valuation is estimated at $2 billion). But what does Redwood do? It reclaims used batteries, breaks them down to collect all their components, including rare earths, repurposes them, and feeds them back into the battery production circuit.

The battery issue is far from technical. Its repercussions are geopolitical, especially in the United States where the Biden presidency continues in its confrontation with China, continuing that trade war sought by former White House tenant Trump.

If you want to find more details about Redwood, and how the former Tesla CTO, J.B. Straubel, plans to recycle batteries, download for free our companion app. The Born2Invest mobile app is available for both Android and iOS devices and keeps its readers up to date with the most important business news of the day.

Redwood has obtained a $2 billion loan commitment from the U.S. Department of Energy

With the billion-dollar IRA program, the U.S. goal is to disincentivize offshoring and convince more and more companies to bring entire supply chains to U.S. soil. On the battery chapter, the situation is complex: as TechCrunch recalls, China processes and refines 59 percent of lithium and 75 percent of cobalt globally, while the U.S. and Canada together do not reach 7 percent.

As reported on CNBC, Redwood has obtained a $2 billion loan commitment from the U.S. Department of Energy. Meanwhile, the startup is building two plants where it will boost its business, one in Nevada and the other in South Carolina. By 2030, the goal is to recycle enough batteries to power 5 million electric vehicles.

__

(Featured image by wir_sind_klein via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in StartupItalia. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.