April 2025
Article
4 minutes
Top 10 Private Companies Progress Report: Redwood Materials
Claire Shaw – Portfolio Director
Redwood Materials is a lithium-ion battery recycling company. Their business model is centred around creating a circular supply chain by extracting valuable materials like nickel, cobalt, and lithium from old consumer electronics and end of life EV batteries. These materials are then refined to produce anode and cathode materials for new batteries and sold back to manufacturers for use in new products.
Redwood generates revenue through two main channels: Recycling Services, whereby companies pay Redwood to process their waste materials, and Sales of Refined Materials, where Redwood sells the extracted and refined materials back to manufacturers for use in new battery production.
Redwood Materials is currently the largest lithium-ion battery maker in North America with approximately 70% market share.
Key Facts
Operational Highlights
- During 2024, Redwood extracted enough lithium and nickel out of recycled batteries to supply 20 gigawatt hours (GWh) of lithium-ion batteries, or roughly equivalent to 250,000 electric vehicles.
- Redwood expanded partnerships during the year with major companies like Panasonic, BMW, General Motors and Toyota, underscoring its strategic role in the industry and consolidating its position as a partner of choice.
- Redwood Materials broke ground on its second facility or ‘campus’ in South Carolina in January 2024. The facility aims to produce 100-GWh of cathode and anode components annually, which is enough to support the production of over 1 million electric vehicles.
Financial Highlights
- In November 2024, the company announced they were on track to generate $200mn of revenue during the year.
- To date, Redwood has now raised nearly $2bn of equity capital along with an additional $2bn loan commitment from the US Department of Energy.
- Since Redwood’s Series D raise in 2023, the company have made very good progress in building a robust and diversified recycling and refining business.
EV: Equity Values: the value of a company available to its shareholders. Shown throughout as at 31 December 2024. Logos courtesy of relevant companies. US Dollar.
Risk Factors
Unlisted investments such as private companies, in which the Trust has a significant investment, can increase risk. These assets may be more difficult to sell, so changes in their prices may be greater.
The trust invests in overseas securities. Changes in the rates of exchange may also cause the value of your investment (and any income it may pay) to go down or up.
About the author - Claire Shaw
Portfolio Director
Claire Shaw is a portfolio director and plays a prominent role in servicing Scottish Mortgage’s UK shareholder base. Before joining in 2019, she spent over a decade as a fund manager with a focus on managing European equity portfolios for a global client base. With a background in analysing companies and communicating investment ideas, Claire is also responsible for creating engaging content that makes the Scottish Mortgage portfolio accessible to all its shareholders. Beyond that, she works closely with the managers, meeting with portfolio companies and conducting in-depth portfolio discussions with shareholders.
Important information
This communication was produced and approved at the time stated and may not have been updated subsequently. It represents views held at the time of production and may not reflect current thinking.
This content does not constitute, and is not subject to the protections afforded to, independent research. Baillie Gifford and its staff may have dealt in the investments concerned. The views expressed are not statements of fact and should not be considered as advice or a recommendation to buy, sell or hold a particular investment.
Baillie Gifford & Co and Baillie Gifford & Co Limited are authorised and regulated by the Financial Conduct Authority (FCA). The investment trusts managed by Baillie Gifford & Co Limited are listed on the London Stock Exchange and are not authorised or regulated by the FCA.
A Key Information Document is available by visiting our Documents page.
Any images used in this content are for illustrative purposes only.
