Sacra estimates that Redwood Materials generated $200M in revenue in 2024. The company is fundamentally a battery recycling and refining business, with cathode manufacturing and energy storage creating additional revenue lines as they scale.

Redwood collects battery-manufacturing scrap, consumer electronics, and retired electric-vehicle batteries, then sells recovered lithium, nickel, cobalt, copper, and other materials to industrial customers. Most revenue in 2024 came from selling recovered minerals into existing end markets rather than returning them directly to new EV batteries, reflecting how early the domestic closed-loop battery supply chain remains.

Redwood processed more than 20 GWh of lithium-ion batteries in 2024, enough material for roughly 250,000 electric vehicles, while recovering more than 95% of the critical minerals inside. Automakers and battery manufacturers including Toyota, Panasonic, and GM provide feedstock and represent future customers for Redwood’s battery-grade materials.

In 2025, Redwood added grid-scale energy storage through Redwood Energy, repurposing usable EV battery packs for data centers and other power customers before eventually recycling them. This adds a second monetization cycle alongside the company’s core recycling, refining, and materials sales.

Redwood Materials was valued at more than $6B following the final close of its $425M Series E round led by Eclipse in January 2026. This was up from approximately $5B at its Series D in August 2023. The Series E was initially announced as a $350M round in October 2025 and was expanded through a $75M final close that added Google as an investor, alongside returning investors Capricorn and Goldman Sachs Alternatives.

Since its 2017 founding, Redwood has raised approximately $2B in equity funding, excluding a separate $2B loan commitment from the Department of Energy. Notable investors include Eclipse, Google, NVentures, Goldman Sachs, Capricorn, and T. Rowe Price. At approximately $200M in revenue in 2024, the valuation implies an approximate 30.0× revenue multiple.

Redwood Materials was founded in 2017 by JB Straubel, former Tesla co-founder and CTO, to address the growing need for sustainable battery materials in the electric vehicle industry.

Redwood Materials found product-market fit as a battery recycling and materials production company for major battery manufacturers and automakers, starting with a crucial partnership with Panasonic at Tesla's Nevada gigafactory in 2019.

The company operates a closed-loop battery recycling system that processes end-of-life batteries and manufacturing scrap from consumer electronics and electric vehicles. Their process extracts valuable materials like cobalt, nickel, and lithium, which are then refined and remanufactured into battery-grade materials.

At their facilities in Nevada and South Carolina, Redwood produces two key products: anode copper foil and cathode active materials, which are essential components for new battery production. These materials are supplied directly to battery manufacturers, creating a domestic supply chain alternative to traditional Asian sources.

The company has expanded its recycling capabilities to handle various sources of lithium-ion batteries, from electric vehicles to consumer electronics like phones and laptops. Through partnerships with major automakers and battery manufacturers, Redwood's recycling and production system helps address the growing demand for sustainable battery materials while reducing dependence on newly mined resources.

Beyond automotive applications, Redwood has expanded into energy-storage systems for AI data centers, leveraging its battery materials supply chain to serve the growing power demands of data-center infrastructure.

Redwood Materials is a battery materials company that operates a closed-loop supply chain for critical battery components through recycling and remanufacturing. The company generates revenue by processing end-of-life batteries and manufacturing scrap to extract valuable materials like lithium, nickel, and cobalt, which it then refines and sells back to battery manufacturers.

The company monetizes through two main channels: recycling services for battery manufacturers and electronics companies, and sales of refined battery materials including cathode active materials and copper foil. Key customers include major automakers and battery producers like Panasonic, Ford, and Volkswagen who pay both for recycling services and to purchase refined materials for new battery production.

Redwood's competitive advantage stems from its vertically integrated approach - by both recycling materials and manufacturing refined components, it captures value across the supply chain while reducing dependence on foreign material sources. The company's strategic partnerships with major automotive and electronics manufacturers provide guaranteed material supply through recycling agreements and committed purchase contracts for refined materials.

Redwood’s automotive relationships create a supply-and-data flywheel across the battery lifecycle. Manufacturing partnerships provide scrap today and end-of-life EV packs later, while Redwood’s diagnostic data helps it route each pack into either energy storage or materials recovery. Packs deployed through Redwood Energy can eventually return to Redwood for recycling, allowing the company to monetize both their remaining energy capacity and their underlying minerals.

Redwood Materials operates in the battery recycling and materials processing market, which is rapidly expanding due to growing EV battery demand and supply chain pressures.

Traditional battery recycling companies like Li-Cycle, Battery Resourcers, and American Battery Technology Company focus primarily on processing end-of-life batteries.

These companies typically use hydrometallurgical or pyrometallurgical processes to extract raw materials but don't generally remanufacture battery components.

Asian companies like CATL, LG Chem, and SK Innovation dominate the battery materials manufacturing landscape, controlling much of the world's cathode and anode production.

These companies have established recycling operations but primarily focus on new material production from mining sources. Several are now expanding into North American markets with new manufacturing facilities.

A new category of companies is attempting to create closed-loop battery supply chains. American Manganese and Ascend Elements are developing proprietary recycling technologies that can directly feed into battery manufacturing.

These companies differentiate themselves by focusing on specific parts of the value chain - some specializing in collection and sorting, others in material processing or component manufacturing.

Through Redwood Energy, Redwood competes with conventional storage suppliers such as Tesla Energy and Fluence, along with smaller companies specializing in second-life EV batteries.

Redwood differentiates through its access to used packs and Pack Manager technology, which allows it to combine batteries from different manufacturers and chemistries, while conventional providers benefit from standardized new cells, established warranties, and longer operating histories.

Redwood Materials has tailwinds from the rapid growth of electric vehicle adoption and battery manufacturing, alongside increasing government support for domestic battery supply chains, with opportunities to expand into broader materials processing and international markets.

The global lithium-ion battery market is expected to grow exponentially as EVs become mainstream. China currently processes 59% of lithium and 75% of cobalt globally, while North America processes just 3% of each. Redwood's recycling and materials processing capabilities position it to capture a significant portion of this market as automakers seek domestic suppliers to meet IRA requirements. The company's target of 500 GWh annual production capacity by 2030 could supply materials for 5 million EVs.

Beyond recycling, Redwood can expand into virgin materials processing and advanced manufacturing. Their copper foil production facility demonstrates this capability, addressing a critical supply chain gap where the U.S. typically exports hundreds of thousands of tons of copper annually. This positions them to become a key domestic supplier of specialized battery materials, potentially expanding into other critical minerals and advanced materials manufacturing.

While currently focused on North American operations, Redwood has identified Europe as its next target market. The European Union's aggressive EV adoption targets and strict battery recycling requirements create natural expansion opportunities. Their proven recycling technology and manufacturing capabilities could be replicated in multiple regions, creating a global network of facilities to serve major automotive manufacturing hubs.

Supply chain dependency: Redwood's success hinges on establishing reliable streams of battery waste and scrap from manufacturers and consumers. A shortage of recyclable materials could leave expensive processing facilities underutilized. The company's growth trajectory assumes rapid EV adoption and battery production, but any slowdown could impact material availability.

China competition: China's established battery recycling industry has significant cost advantages and processing capacity. Chinese companies could expand internationally and undercut Redwood's prices for refined battery materials. The geopolitical push for US supply chains may not be enough if the cost differential becomes too wide.

Technology lock-in risk: Redwood's massive capital investments in current recycling technology could become stranded if battery chemistries shift dramatically. New battery technologies using different materials or formats could require completely different recycling processes. The rapid pace of battery innovation means today's recycling methods may not be optimal for tomorrow's batteries.