JB Straubel's Bet On EV Battery Recycling Is Paying Off, Bigly

Redwood Materials, an EV battery recycling startup founded in 2017 by Tesla co-founder J.B. Straubel, has recently secured over $350 million in Series E funding despite a downturn in the US EV market following the expiration of the $7,500 federal tax credit. This strong investor interest is attributed to Redwood’s strategic expansion beyond EV battery recycling into the rapidly growing battery energy storage system (BESS) market. The company aims to create a domestic circular supply chain for critical minerals and has positioned itself as a key player in the broader electricity ecosystem. The investment round was led by California venture capital firm Eclipse, whose board member Joe Faith highlighted Redwood’s innovative approach and diversification strategy. Faith also emphasized the importance of expanding renewable energy resources and infrastructure in the US, countering political support for fossil fuels. The article notes that renewable energy sources like solar and energy storage accounted for 82% of new power generation capacity added to the US grid in the first half of the year, underscoring