A Tesla Founder Started an EV Battery Recycling Company That’s on Pace to Make $200 Million a Year
Tesla co-founder JB Straubel launched Redwood Materials in 2017 to help the industry shift away from mining minerals and bolster the EV industry’s sustainability.
Key Takeaways
- JB Straubel’s Redwood Materials has been in the recycled battery business for seven years.
- He told The Wall Street Journal the company is on track to make $200 million in revenue this year.
- The company aims to produce enough battery materials for 1 million electric vehicles annually.
This article originally appeared on .
said his electric vehicle battery-recycling startup, , will make hundreds of millions in revenue this year.
Straubel disclosed Redwood Materials’ estimated revenue during an interview with The Wall Street Journal, saying his company will rake in about $200 million.
Straubel launched Redwood Materials in 2017 to create a which refers to extracting raw materials from used batteries and returning them to production after processing them. The company, based in Northern Nevada, hopes this can prompt a shift away from mining minerals and bolster the EV industry’s sustainability.
“To make batteries sustainable and affordable, we need to close the loop at the end of life. We’re localizing a global battery supply chain and producing battery materials in the US for the first time — from as many recycled batteries as possible,” the company’s website says.
Redwood Materials has extracted enough nickel and lithium from recycled batteries to “supply 20 gigawatt hours of lithium-ion batteries, or roughly equivalent to 250,000 electric vehicles,” the Journal reported.
The company aims to produce enough battery materials for 1 million EVs annually.
Representatives for Redwood Materials did not respond to a request for comment from Business Insider.
Tesla produces electric vehicles in the United States, but Americans have been slow to adopt them. Tristar Media/Getty Images via Business Insider
Straubel’s efforts come at a time when in the United States despite and popularity in .
EVs have gained traction in countries like , where advisory firm Automobility says about in 2022 were electric.
Americans have been slower to warm up to EVs.
A June study by McKinsey & Company found that 46% of surveyed in the United States said they would likely return to gas-powered vehicles. Globally, some reasons consumers leaned away from EVS included charging options, high costs, and more.
Although President Joe Biden provided a $7,500 , Donald Trump’s incoming administration is considering revoking it.
Key Takeaways
- JB Straubel’s Redwood Materials has been in the recycled battery business for seven years.
- He told The Wall Street Journal the company is on track to make $200 million in revenue this year.
- The company aims to produce enough battery materials for 1 million electric vehicles annually.
This article originally appeared on .
said his electric vehicle battery-recycling startup, , will make hundreds of millions in revenue this year.
Straubel disclosed Redwood Materials’ estimated revenue during an interview with The Wall Street Journal, saying his company will rake in about $200 million.
