How to buy Redwood Materials stock?

Highlights 

  • Founded in 2017, Redwood Materials was started by Tesla co-founder JB Straubel to invent sustainable materials.

  • Potential investors are searching for the Redwood Materials stock and the company is gaining a lot of attention.

  • Redwood Materials is planning to triple the size of its 150,000-square-foot facility by the end of this year.

JB Straubel, co-founder of electric-vehicles maker Tesla, had once expressed his desire to transform his startup into a large-scale battery recycling company. On Wednesday, September 15, Mr Straubel's startup raised money to inch closer towards accomplishing that mission.

Founded in 2017, Redwood Materials was started by the Tesla co-founder to invent sustainable materials and now it aims to become one of the largest battery recycling companies in the world. On September 15, Redwood Materials secured US$ 700 million in a funding round, and it will use the money to expand its existing business operations.

How to buy Redwood Materials stock?

The Nevada-based company's Series C funding round was led and advised by T. Rowe Price Associates and included companies like Goldman Sachs Asset Management and Fidelity among others.

Previously, Redwood Materials had raised US$ 40 million in a Series B round and including the seed money, Redwood Materials' total raise is reportedly around US$ 800 million. After the latest round of funding, the company could value at US$ 3.7 billion.

What's next for Redwood Materials?

According to Mr Straubel, Redwood Materials wants to create a circular supply chain as it would ensure smooth supply to the world's battery cell producers. Demand for battery cells is expected to increase due to an expected boom for electric vehicles and consumer electronics.

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Redwood's business operations include recycling scrap from battery cell production and consumer electronics. After this process, it extracts essential materials like lithium, nickel, and cobalt. These materials are given back to battery producers for lithium-ion batteries.

Redwood's customers include companies like Panasonic and it has also partnered with Amazon to recycle EV and other lithium-ion batteries.

Investors are looking for Redwood Materials stock after it secured US$ 700 million in funding

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Aggressive expansion

To expand the business operations, the company is also planning to triple the size of its 150,000-square-foot facility by the end of this year. Redwood Materials is reportedly expected to generate an annual output of 100 GWh of cathode active materials and anode foil in the next four years.

If the company can achieve this annual output, then it would be sufficient to produce batteries for one million EVs.

To progress on the path of inventing sustainable materials, Redwood will likely invest money in large-scale projects that could improve the recycling process and increase efficiency.

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Bottom line

At the current moment, Redwood Materials stock is not available as it is a privately held company. However, after the latest round of funding, potential investors are searching for the Redwood Materials stock and the company is gaining a lot of attention.

If the company needs more money in future for further expanding the business operations, Redwood Materials could take the IPO route to raise money.

After the rise of trading platforms of brokerage companies, retail investors now have a better chance of grabbing the pre-IPO shares. If the Redwood Materials’ IPO happens, interested investors could get them through trading platforms or stockbrokers.

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