Redwood Materials said Tuesday it acquired lithium-ion battery recycler Redux Recycling, a purchase meant to accelerate U.S. company's expansion into Europe.
This is Redwood's second acquisition since former Tesla co-founder and CTO JB Straubel founded the battery materials and recycling startup in 2017. Last year, Redwood acquired a small UK recycling technology company. The company didn't disclose terms on either purchase. However, the company did say about 70 technical staff including chemical engineers, metallurgists, and material scientists will join its existing team in Europe.
Redwood Materials has always had a buzz around it. But in the past year, its been on an expansion and fundraising tear.
Redwood announced in August that it raise more than $1 billion in a Series D round at a post-money valuation of more than $5 billion, according to a source familiar with the matter. The raise brings Redwood’s total equity capital to $2 billion. In February, Redwood secured a conditional commitment for a $2 billion loan from the Department of Energy as part of the Biden administration’s bid to build up a supply chain for EVs in the United States. The milestone-based financing will be provided to Redwood in tranches to support its growth and the expansion of its headquarters in Nevada.
The company also announced in December 2022 plans to build a new battery materials and recycling facility on a 600-acre campus near Charleston, South Carolina that will eventually employ 1,500 people and make enough cathode and anode components to supply 1 million EVs annually.
Redwood made its first move into Europe last year as part of Straubel's global ambitions to be one of the largest battery materials and recycling companies. It sees Redux as a pathway towards that expansion.
Redux has a facility in Bremerhaven, on Germany's North Sea coast that is equipped for 10,000 tonnes of annual processing capacity to recycle electric vehicle and E-bike batteries, stationary storage systems and consumer devices like cell phones, laptops, and power drills. The location is a strategic one as Bremerhaven has one of the largest import ports for vehicles. Redwood said it will give the ability to transport, recycle, and refine electric vehicle packs and batteries from across the European continent.