Redwood Materials, the company founded by former Tesla executive JB Straubel, has recently acquired lithium-ion battery recycler Redux Recycling GmbH. The financial details of the acquisition have not been disclosed. The acquisition of Redux Recycling will allow Redwood Materials to expand its battery-recycling capacity in Europe and establish a strong presence in the EU market.
According to Redwood Materials, the acquisition of Redux Recycling will enable them to quickly expand operations, increase capacity for battery recycling, and collaborate with existing suppliers, customers, and industry partners across Europe. The European market for battery recycling and materials manufacturing is growing rapidly, and Redwood sees this acquisition as a strategic move to position themselves as a key player in the market.
Redux Recycling, located in Germany, operates a lithium-ion battery recycling plant in Bremerhaven. The plant has been operational since 2018 and has a processing capacity of 10,000 tonnes per year for recycling lithium battery chemistries. Redux Recycling’s facility accepts various types of lithium-ion batteries, including those from household cells, portable devices, electric vehicles, and battery manufacturing scraps. Moreover, the facility is equipped to recycle batteries from e-bikes, stationary systems, consumer devices like cell phones and laptops, as well as power drills.
As part of the acquisition, Redwood Materials will gain approximately 70 experienced technical staff, including chemical engineers, metallurgists, and material scientists, who will join their team in Europe. The advanced material recovery processes of Redwood Materials will complement Redux Recycling’s pre-treatment and technical operation capabilities. This collaboration is expected to enhance the efficiency and effectiveness of the battery-recycling process.
Redwood Materials has been proactively expanding its operations in Europe and aims to localize the global battery supply chain on each continent. The company believes that localizing the battery supply chain will reduce costs and improve the sustainability of electric vehicles and clean energy storage. In August 2023, Redwood Materials secured $1 billion in funding led by JB Straubel, bringing their total equity capital raised to nearly $2 billion. Additionally, they have a $2 billion loan commitment from the United States Department of Energy.
With this acquisition, Redwood Materials is poised to strengthen its position in Europe’s battery-recycling market and contribute to the advancement of sustainable energy solutions.
Sources:
– Redwood Materials Twitter: https://twitter.com/RedwoodMat/status/1439921022645255169
– Teslarati: Redwood Materials acquires lithium-ion battery recycler in Europe: report