Redwood Materials
Closing the loop from recycled cells back to cathode-active material — the largest battery circularity campus in the world.
Footage · CNBC Television · YouTube
approx. 100 GWh/yr
Target CAM capacity
Cathode-active material output equivalent
approx. $2 billion
DOE loan commitment
Conditional federal loan guarantee, 2023
2017
Founded
Started as pure battery-recycling company
approx. >95%
Metal recovery rate
Publicly stated recovery of Li, Ni, Co, Cu
South Carolina
Second US site
Announced 2024 for anode/CAM expansion
Li, Ni, Co, Cu, graphite
Core inputs recycled
Feedstock from EV, consumer-electronics scrap
2017
Company founded by a former EV-industry battery executive to build US domestic battery materials supply chain.
2019-2020
Recycling operations begin in Carson City, Nevada, processing battery scrap and end-of-life packs.
2021
Recycling and material-recovery partnerships announced with major automakers and battery cell makers.
2022
Company announces plan to build approx. 100 GWh/yr cathode-active-material and anode-foil capacity in Nevada.
2023
US Department of Energy issues a conditional loan commitment of approx. $2 billion for the cathode/anode facility.
2024
Second US site (South Carolina) announced to add anode copper-foil and CAM capacity closer to eastern cell plants.
Redwood Materials' Nevada campus shows how a single site can close the loop from spent cells to cathode-active material (CAM) at multi-GWh scale, cutting import dependence on lithium, nickel, cobalt and graphite. For Indian developers and lenders racing to build ACC PLI cell plants, this is the reference model for co-located recycling, feedstock security, and de-risked project finance using sovereign-backed loan guarantees rather than pure equity risk.
India's ACC PLI scheme and 2022 Battery Waste Management Rules create the same conditions that enabled this campus: mandated recycling targets, EPR credits, and localisation incentives for cathode/precursor material. Indian developers bidding for cell-plant or recycling PLI tranches should twin proposals with recycling capacity to qualify for higher localisation scores, while lenders can structure PLI-linked cash flows alongside a partial credit guarantee (akin to the DOE loan) via SIDBI, IREDA or multilateral DFIs to bridge first-of-kind technology risk. Grid and land-use planning should reserve buffer zones for hazardous-material storage similar to Nevada's siting approach.
Engineering, procurement and finance lessons
01
Co-locate recycling with cell manufacturing
Placing recycling, refining and CAM production on one campus near cell and pack makers cuts logistics cost, shortens qualification cycles, and reduces exposure to critical-mineral price swings — a model directly transferable to India's PLI cell-manufacturing clusters.
02
Blended finance de-risks first-of-kind plants
A sovereign loan guarantee (DOE) was essential to unlock private capital for an unproven-at-scale process. Indian lenders should structure similar viability-gap or partial-credit-guarantee instruments for domestic CAM/recycling plants rather than relying solely on equity or PLI subsidy.
03
Feedstock security is the real bottleneck
Recovery economics depend on securing long-term scrap and end-of-life battery supply contracts with OEMs early, before capacity is built — India's Battery Waste Management Rules (2022) create the regulatory hook but commercial offtake agreements must follow fast.
04
Permitting and hazardous-materials handling scale with output
Environmental permitting (wastewater, black-mass storage, solvent handling) becomes the critical path at 100 GWh/yr scale; early engagement with state pollution boards and phased commissioning reduces schedule risk.
05
Byproduct valorization improves project IRR
Recovering copper foil and battery-grade metals as marketable co-products, not just cathode powder, materially improves unit economics — Indian recyclers should design multi-product revenue models from day one.
Sources · US Department of Energy · Reuters · Bloomberg · TechCrunch · Nevada Governor's Office of Economic Development
- Structuring blended-finance models (DFI guarantees + PLI incentives) for Indian cathode-material and recycling plants.
- Advising on co-location feasibility studies linking cell-manufacturing PLI sites with battery-recycling feedstock plans.
- Supporting EPC and permitting roadmaps for hazardous-material handling aligned with state pollution control board norms.