Circular economy-focused battery materials provide Redwood announced that it has raised over $1 billion in a Series D equity round. The company said that proceeds from the financing will be used to grow its capacity and expand the domestic supply chain, enabling customers to purchase U.S.-made battery materials.

Founded in 2017 by Tesla co-founder and former CTO JB Straubel, Nevada-based Redwood collects, recycles, refines and remanufactures battery materials, with a focus on creating a closed-loop domestic supply chain for lithium-ion batteries. The company recovers 95% of key battery elements and supply raw materials back to U.S. battery manufacturers, and aims to produce enough anode and cathode for one million electric vehicles annually by 2025, and for five million EVs annually by 2030.

In a statement announcing the completion of the equity round, Redwood said:

“We are relentlessly focused on expanding our collection of end-of-life batteries, increasing our refining capability to recover higher quantities, and harnessing their value to make the most sustainable products. This approach stands as the cornerstone of our strategy as we scale our battery material production capacity.”

The Series D round was co-led by Goldman Sachs Asset Management, Capricorn Investment Group’s Technology Impact Fund, and funds and accounts advised by T. Rowe Price, and included participation from existing investors and new investors including OMERS, Caterpillar Venture Capital, Microsoft’s Climate Innovation Fund, and Deepwater Asset Management.

Sebastien Gagnon, Managing Director in Private Equity at Goldman Sachs Asset Management, said:

“As the electrification megatrend continues to accelerate, building a local sustainable battery materials supply chain is more important now than ever. We believe the Redwood team is well-positioned to become a leader in the battery materials industry. We look forward to working with the company in the coming years and leveraging our firm’s global platform to support Redwood’s growth, which we believe will play an important role in the ongoing energy transition.”