A Storey County company is investing in Nevada by expanding its manufacturing site for electric car batteries with an over $5 billion return for the state.
According to a news release from the governor’s office, Redwood Materials will invest $1.1 billion to increase operations in exchange for a $105.6 million abatement from the Nevada Governor’s Office of Economic Development (GOED) Board of Directors.
“This investment in Nevada is an affirmation of the importance our state plays in the global lithium industry economy,” Gov. Steve Sisolak (D-NV) said in the release. “While the state is issuing a $105 million abatement, we are projecting the return on investment will be $5.6 billion for Nevada. Redwood Materials is a great company, and I’m optimistic that it will only increase its footprint in Nevada.”
Redwood Materials will expand its battery materials facility in Storey County in order to manufacture a self-supplying chain of clean energy that will mitigate the use of fossil fuels. When the facility opens, it will be the first time that lithium is mass produced in America. The element makes up 65% of a battery’s price.
Redwood is planning to close gaps in the supply chain that have environmental, financial and geopolitical dynamics. The company remanufactures anode and cathode components to recover over 95% of the metals from batteries, including lithium, nickel, cobalt and copper. The company then markets its components back to American battery cell producers, keeping the metals entirely within nation.
A rise in electric vehicle demand has led to the need for the expansion because the current supply has been backlogged logistically for months.
For Redwood, this is the second-largest capital investment since GOED’s founding more than 10 years ago, the release said.
“Redwood is committed to supplying U.S. battery manufacturers with sustainable, domestic materials,” JB Straubel, founder and CEO of Redwood Materials, said. “Our investment in Nevada allows us to scale anode and cathode materials to support this transition while creating jobs and investing in the community.”
Straubel went on to show appreciation for Nevada’s support.
“We thank the State of Nevada for recognizing the importance of this project in establishing a domestic battery supply chain and securing American leadership in both battery recycling and critical materials production,” he said.
