In a strategic move aimed at bolstering its battery-recycling prowess in Europe, Redwood Materials, led by former Tesla executive JB Straubel, has quietly acquired the German lithium-ion battery recycler, Redux Recycling GmbH, in an undisclosed deal.
“This acquisition will provide us with a well-established EU presence to quickly expand operations, increase capacity for battery recycling, and work closely with already-established suppliers, customers, and industry partners across Europe,” stated a Redwood Materials spokesperson.
With the rapid growth of the European market for battery recycling and materials manufacturing, Redwood’s acquisition of Redux firmly positions the company as a major player in this burgeoning sector. Redux Recycling, headquartered in Germany, operates a lithium-ion battery recycling facility located in Bremerhaven on the North Sea coast, which has been operational since 2018. The plant boasts an impressive annual processing capacity of 10,000 tonnes, specifically tailored for recycling various lithium battery chemistries.
Redux Managing Director Martin Reichstein emphasized the company’s commitment to environmental standards, saying, “Our know-how assures our customers of safe disposal and ensures we meet the most stringent recycling and environmental standards.”
Redux’s facility is equipped to recycle a wide array of lithium-ion batteries, encompassing household cells, portable batteries, electric vehicle batteries, and battery manufacturing scraps. Moreover, it handles the recycling of e-bike batteries, stationary systems, consumer devices like cell phones and laptops, as well as power drills.
This strategic acquisition brings approximately 70 seasoned technical professionals, including chemical engineers, metallurgists, and material scientists, into Redwood’s European team. Straubel’s company envisions the synergy between Redwood’s advanced material recovery processes and Redux’s pre-treatment and technical operation capabilities as a significant step forward in the realm of sustainable battery recycling.
Notably, Redwood Materials had previously unveiled its expansion plans in Europe, aiming to localize the global battery supply chain in each continent. The company believes that such localization efforts will not only reduce costs but also enhance the sustainability of electric vehicles and clean energy storage systems.
In August 2023, Redwood Materials secured a substantial funding round of $1 billion, spearheaded by JB Straubel. This comes in addition to the nearly $2 billion in equity capital that Redwood has raised and a $2 billion loan commitment from the United States Department of Energy, highlighting the company’s strong financial backing as it continues to drive innovation in the battery recycling and clean energy sector.