Redwood Supplies, the battery and e-waste recycling startup based by former Tesla CTO JB Straubel, introduced Tuesday that it has closed a $1 billion funding spherical to develop operations within the U.S.

The corporate takes spent electrical automobile batteries, breaks them down, and makes use of the metals from them —together with nickel, copper, cobalt, and lithium — to supply new elements that may go into electrical automobile batteries.

One in every of Redwood’s main targets is to supply battery elements domestically to scale back a number of the international commerce and geopolitical dangers across the electrical automobile business. Redwood additionally goals to make use of as a lot recycled materials as potential to scale back the environmental influence the auto business transitions from inside combustion automobiles to battery electrics and hybrids.

Whereas Redwood initially targeted on recycling, it additionally engages in refining and remanufacturing, and provides what it calls sustainably mined supplies into its merchandise as wanted, Straubel advised CNBC earlier this yr.

As CNBC beforehand reported, earlier this yr Redwood locked in a $2 billion mortgage dedication from the Division of Vitality. It plans to make use of its funding to develop operations within the U.S. together with in and past its base in Carson Metropolis, Nevada, and has introduced plans to construct a Battery Supplies Campus outdoors of Charleston, South Carolina.

U.S. Secretary of Vitality Jennifer M. Granholm has recognized home manufacturing of batteries and elements as one strategy to meet rising demand for EVs, generate jobs and speed up a transition from fossil fuels to renewable and clear power.

Fossil fuels are the dominant type of power utilized on this planet as we speak, and account for a majority of synthetic CO2 emissions and different poisonous air and particle pollution which can be driving local weather change and its results, together with extra frequent, extra excessive climate occasions.

Based on the Vitality Data Administration, regardless of the rising share of electrical automobiles on the highway, gasoline (excluding gas ethanol) nonetheless accounted for 52% of whole power consumption by the U.S. transportation sector in 2022. 

North America’s battery manufacturing capability is anticipated to develop to almost 1,000 Gigawatt-hours per yr (or GWh/yr) by 2030 in accordance with analysis from Argonne Nationwide Laboratory.

For its new progress funding spherical, Goldman Sachs Asset Administration, Capricorn’s Expertise Affect Fund, and different un-named funds suggested by T. Rowe Worth Associates led the deal, in accordance with an organization assertion. The collection D spherical of fairness funding brings Redwood’s whole capital raised to almost $2 billion. OMERS, heavy gear makers Caterpillar Inc., Microsoft’s Local weather Innovation Fund and Deepwater Asset Administration additionally invested within the spherical.