Battery recycler Redwood Materials said it received a $2 billion conditional loan commitment from the US Department of Energy’s Loan Program Office for its battery materials campus.
It will draw this in tranches to support its phased construction of the campus.
The funding is part of the Advanced Technology Vehicles Manufacturing Loan Program (ATVM). Ultimately, Redwood will produce 100GWh annually of ultra-thin battery-grade copper foil and cathode-active materials from new and recycled feedstocks.
It claims such Gigafactory scale will be a first in the US. It will provide enough battery materials to produce more than a million electric vehicles (EVs) a year domestically.
Last month, Redwood began producing anode copper foil at its Nevada facility. This marks a year from site groundbreaking to production. Later this year, it expects to begin cathode qualification.
Panasonic will be the first to source copper foil for cell production in the Nevada Gigafactory and cathode material for battery cell production in Redwood’s new Kansas plant, targeted to come online in 2025.
“Our project allows battery and automotive manufacturers to meet the new stringent critical mineral and battery component requirements for consumers to qualify for electric vehicle tax credits as established by the Inflation Reduction Act,” the company said.
It said the Loan Programs Office had spent more than a year on extensive diligence that thoroughly reviewed Redwood’s technology, ability to repay the loan, product demand, and dozens of other factors.
