• Fri. May 24th, 2024

U.S. set to bank loan Redwood Products $2 billion for EV supplies plant


Feb 10, 2023
U.S. set to loan Redwood Materials $2 billion for EV materials plant


The U.S. Strength Office on Thursday made a conditional commitment to Redwood Resources for a $2 billion low-value government mortgage to support establish out a $3.5 billion recycling and remanufacturing advanced in Nevada for battery resources.

Vitality Secretary Jennifer Granholm stated that, if finalized, the financial loan will help the task produce vital resources for electric powered vehicle batteries.

“It truly is going to be a slam dunk for our domestic burgeoning electrical motor vehicle industry,” Granholm stated, including that Redwood will enjoy an “outsized part in bringing the battery source chain house — simply because you are targeted on the parts that we do not have in the United States.”

Redwood Components expects to attract down the initial loan tranche later this yr, Chief Govt JB Straubel said in an job interview.

The original personal loan draw “will assist accelerate (creation) and compress the time for us to get to total scale” at the northern Nevada elaborate, which has started out to create copper foil for battery anodes, Straubel mentioned.

Straubel mentioned there has been “a frenzy of activity” between electric motor vehicle and battery brands considering that President Joe Biden signed the Inflation Reduction Act (IRA) in August. The IRA regulations are developed to shift the U.S. battery offer chain absent from China, which at present generates 70% of batteries for electrical cars.

Final July, the Vitality Division claimed it would financial loan $2.5 billion to Ultium Cells, a joint enterprise involving General Motors Co and LG Power Option, to assistance finance development of new U.S. battery cell production services.

Past month, the division explained it prepared to financial loan Ioneer Ltd up to $700 million to establish its Rhyolite Ridge lithium mining venture in Nevada.

The loans are coming from the Innovative Know-how Motor vehicles Producing (ATVM) bank loan application. Extra than 10 several years in the past, the ATVM system furnished very low-charge govt financial loans to Tesla, Ford Motor and Nissan Motor, which provided some cell production.

Expansion Ideas

Redwood Elements, established in 2017 by former Tesla government Straubel, is on a route to become one particular of the world’s greatest recyclers and remanufacturers of battery supplies, which include copper, lithium, cobalt and nickel.

In addition to the Nevada site around Reno, Redwood Elements in December claimed it prepared to construct a comparable facility northwest of Charleston, South Carolina, also at a value of around $3.5 billion.

Each and every facility will have an first planned potential to approach 100 gigawatt-hrs of electrode materials, enough to source additional than 1 million EVs each and every. The South Carolina sophisticated eventually could be expanded to “quite a few hundred gigawatt-hours,” Straubel said.

Straubel claimed the South Carolina challenge is functioning about two decades at the rear of the Nevada facility.

Redwood Resources explained it will provide copper foil from Nevada to Panasonic for battery cells created at the Nevada Gigafactory that Panasonic jointly operates with Tesla. It will also provide cathode materials to Panasonic’s new Kansas battery plant, which is slated to open in 2025.

Redwood Supplies has offer agreements with a quantity of makers, which include Ford, Toyota Motor and Volkswagen Team.

(Reporting by Paul Lienert in Detroit and David Shepardson in Washington Editing by Sharon Singleton and Jonathan Oatis)

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