Tesla Founder Says EV Battery-Recycling Startup Will Make $200 Million

• JB Straubel’s Redwood Materials has been within the recycled battery enterprise for seven years.
• He informed The Wall Street Journal the corporate is on monitor to make $200 million in income this yr.
• The firm goals to supply sufficient battery supplies for 1 million electrical autos yearly.

Tesla cofounder JB Straubel mentioned his electrical car battery-recycling startup, Redwood Materials, will make a whole lot of hundreds of thousands in income this yr.

Straubel disclosed Redwood Materials’ estimated income throughout an interview with The Wall Street Journal, saying his firm will rake in about $200 million.

Straubel launched Redwood Materials in 2017 to create a “remanufacturing financial system,” which refers to extracting uncooked supplies from used batteries and returning them to manufacturing after processing them. The firm, primarily based in Northern Nevada, hopes this could immediate a shift away from mining minerals and bolster the EV trade’s sustainability.

“To make batteries sustainable and inexpensive, we have to shut the loop on the finish of life. We’re localizing a world battery provide chain and producing battery supplies within the US for the primary time — from as many recycled batteries as attainable,” the corporate’s web site says.

Redwood Materials has extracted sufficient nickel and lithium from recycled batteries to “provide 20 gigawatt hours of lithium-ion batteries, or roughly equal to 250,000 electrical autos,” the Journal reported.

The firm goals to supply sufficient battery supplies for 1 million EVs yearly.

Representatives for Redwood Materials didn’t reply to a request for remark from Business Insider.

Straubel’s efforts come at a time when EVs are struggling within the United States regardless of Tesla’s presence and recognition in abroad markets.

EVs have gained traction in nations like China, the place advisory agency Automobility says about 27% of latest car gross sales in 2022 have been electrical.

Americans have been slower to heat as much as EVs.

A June research by McKinsey & Company discovered that 46% of surveyed EV house owners within the United States mentioned they might doubtless return to gas-powered autos. Globally, some causes customers leaned away from EVS included charging choices, excessive prices, and extra.

Although President Joe Biden offered a $7,500 EV tax credit score, Donald Trump’s incoming administration is contemplating revoking it.