Redwood Materials, a battery recycling and manufacturing company, has received a significant boost in its efforts to expand its domestic operations. The Department of Energy has committed to providing a $2 billion loan for Redwood Materials’ massive 173-acre facility located at the Tahoe Reno Industrial Center, east of Reno-Sparks.
The facility will have the capacity to process “two-and-a-half Gigafactories worth of materials,” enough to supply 1 million electric vehicles per year, according to Redwood Materials CEO JB Straubel, who previously served as Tesla’s chief technology officer.
See also: Redwood Materials invests $ 3.5 billion to build new battery plant in Charleston, SC
The Biden Administration has prioritized strengthening the domestic battery sector in response to the increasing demand for electric vehicles and consumer electronics. This increased focus has already resulted in several Nevada projects receiving support from the Department of Energy.
The Ioneer Rhyolite Ridge project in Esmeralda County received a $700 million loan commitment last month, while American Battery Technology Company and Lilac Solutions were awarded grants totaling nearly $108 million for lithium-related projects in Northern Nevada.
Redwood Materials’ facility has also received strong support from local officials who aim to make Nevada a lithium state. Former Governor Steve Sisolak approved over $105.6 million worth of tax incentives for the company’s battery recycling and material facility last December. Both of Nevada’s U.S. senators, Catherine Cortez Masto and Jacky Rosen, also expressed support for Redwood Materials’ loan application to the Department of Energy in a joint letter sent last year.
See also: Volkswagen, Redwood Materials to collaborate on recycle EV batteries in US
Redwood Materials currently employs nearly 500 people in Nevada and the planned expansion of the facility will create thousands of new jobs in the state. The company’s battery recycling and manufacturing facility is poised to play a significant role in reducing the country’s dependence on foreign supply chains.
