KEY POINTS
- Redwood Materials is a company dedicated to the recycling of lithium-ion batteries.
- The company remains privately held and has not indicated any plans for an initial public offering.
- Although Redwood Materials stock is not available to most investors, other similar companies may present attractive investment opportunities.
Redwood Materials Stock and Valuation Information and Details
| Redwood Materials Information | Detail |
| Year Founded | 2017 |
| Founder | J.B. Straubel (Tesla co-founder) |
| Headquarters | Carson City, NV |
| Employees | 300 |
| Market Potential | Estimated compound annual growth rate of about 31% from $6.5 billion in 2022 to $35.1 billion by 2031 |
| Redwood Materials Valuation as a Final Finding Round | $6.5 Billion |
Growth investors are eyeing the stock of Redwood Materials, which is looking to take advantage of the growing demand for lithium-ion batteries. Founded in 2017 by Tesla co-founder J.B. Straubel, Redwood Materials is committed to fostering a sustainable future. The company focuses on recycling, improving materials, and remanufacturing lithium-ion batteries for reuse.
The potential for growth in the lithium-ion battery recycling market is significant. The market is estimated to expand at a compound annual growth rate of about 31%, growing from about $6.5 billion in 2022 to $35.1 billion by 2031.
Redwood Materials, a new company in the battery recycling space, has quickly gained traction with major automakers over the past two years. Ford (F -0.84%) made a significant investment in 2021. In 2022, Redwood Materials teamed up with Volkswagen to recycle electric vehicle (EV) batteries nearing their retirement. Just this year (2023), Redwood Materials announced a partnership with Toyota (TM -0.49%) to develop a recycling solution for hybrid electric vehicle batteries.
Investors interested in adding redwood material stocks to their portfolio should consider several factors. These include how to buy a company’s shares, the likely timing of its upcoming IPO, and exploring other available investment opportunities.
Is Redwood Materials stock publicly traded?
Redwood Materials’ stock wasn’t listed on any exchange until early 2024, so investors looking to buy shares are currently out of luck.
Financial institutions including Goldman Sachs (GS, -1.72%) and T. Rowe Price (TROW, 0.2%) own stakes in Redwood Materials in addition to ownership by company insiders. Redwood Materials raised more than $2 billion in private investment during its most recent Series D capital round.
When will Redwood Materials IPO?
Investors looking for substantial growth opportunities often view IPO stocks as attractive prospects. As a result, Redwood Materials watchdogs may be eager to buy shares when it goes public.
Unfortunately, there is no indication that Redwood Materials plans to launch an IPO anytime soon, disappointing investors hoping to increase their stake in the company. Despite interest in other promising companies, Redwood Materials has no IPO scheduled for this year.
How to buy Redwood Materials stock
Potential investors interested in Redwood Materials may be disappointed to learn that the opportunity to buy its stock is not available because the company is privately held. However, other investment opportunities may capture their interest.
Step 1: Open a brokerage account
Investing in stocks is straightforward, but it does require some initial effort. The first step is to open a brokerage account, which is required before buying any shares. There are many options available to investors, but beginners can find platforms like Fidelity, which provide online stock trading with zero commission.
Step 2: Figure out your decisions
Choosing to invest in stocks is a positive step towards increasing personal wealth. However, prudent investors consider their financial situation before making any investment decisions. For some, buying stocks all at once may make sense, while others prefer to gradually build their investment portfolio over time.
Step 3: Do your research
Retail investors have plenty of resources available to explore various stock investment opportunities. While Redwood Materials may not be accessible to the typical retail investor, there are similar companies that investors may find attractive.
1. Ford
| Company Name | Ford |
| Investment in Redwood Materials | $50 million in 2021 |
| Collaboration with Redwood Materials | Developing best practices for battery recycling and remanufacturing from Ford EVs |
| EV Market Expansion Goals | – Capacity target: 2 million EVs by 2026- Growth rate: Significant increase from 100,000 EVs in 2022 |
| Strategic Initiatives | Expanding the commercial vehicle lineup in EVs- Investing in battery technology and recycling |
Investors interested in Redwood Materials can invest in the company indirectly by buying shares of Ford, which invested $50 million in Redwood Materials in 2021.
Ford and Redwood Materials have announced their intention to collaborate to develop best practices for assembling and disassembling end-of-life batteries from Ford electric vehicles. The partnership aims to increase battery recycling and remanufacturing processes, ultimately reducing the costs associated with battery repair and the raw materials needed to make new batteries.
Ford is significantly ramping up its efforts to expand its presence in the electric vehicle (EV) market. By 2026, Ford aims to have the capacity to produce 2 million EVs, a substantial increase from the 100,000 EVs available in 2022, including its commercial vehicle lineup.
2. LanzaTech
| Company Name | LanzaTech |
| Focus | Recycling carbon emissions to produce ethanol |
| Commercial Facilities | Operating seven by early 2024 |
| Product Utilization | Selling recycled carbon to businesses for various products, including clothing and aviation fuel |
| Partnerships | – Zara (Industria de Diseno Textil SA): Major clothing retailer- H&M (HNNMY): Major clothing retailer- Virgin Atlantic (SPCE): Airline- Dow (DOW): Chemical manufacturer |
LanzaTech (LNZA 4.47%) focuses on recycling carbon rather than batteries. LanzaTech will operate seven commercial facilities by early 2024, using carbon emissions to produce ethanol. After the emissions are regenerated, LanzaTech sells the recycled carbon to businesses that use it to make everything from clothing to aviation fuel.
As proof of the market demand for its recycled carbon products, LanzaTech has signed agreements with several well-known partners, including major clothing retailers such as Zara (owned by the Spanish company Industria de Diseno Textil SA ) and H&M (HNNMY, -0.82%). Apart from the apparel industry, LanzaTech has alliances with Virgin Atlantic (SPCE 7.45%) and Dow (DOW 0.41%), a chemical manufacturer.
3. PureCycle Technologie
| Company Name | PureCycle Technologies |
| Stock Ticker | PCT |
| Focus | Recycling plastic, specifically polypropylene |
| Advanced Facility | Located in Ironton, Ohio (opened in 2023), |
| Production Goal | 107 million pounds of ultrapure recycled (UPR) resin annually |
| Upcoming Facilities | – Georgia: First plant with multiple production lines, expected to open late 2024 – Belgium, South Korea, and Japan: Developing plastic recycling facilities in various stages |
PureCycle Technologies (PCT -2.51%) is committed to recycling plastic instead of carbon. PureCycle Technologies opened for business in 2023 at their advanced polypropylene facility in Ironton, Ohio. The company’s goal is to expand operations to produce 107 million pounds of ultrapure recycled (UPR) resin annually.
In addition to its Ohio facility, PureCycle Technologies is currently developing multiple plastic recycling facilities in Georgia, Belgium, South Korea, and Japan, all in various stages of construction. The corporation’s first plant with multiple production lines, located in Georgia, is expected to open for business in late 2024, according to PureCycle Technologies.
Is Redwood Materials profitable?
Unlike publicly traded corporations, Redwood Materials is a private company and is not required to make regulatory filings. It is difficult to determine whether a company is profitable at this point due to the limited financial information that is currently accessible. After the acquisition of Redux Recycling in 2023, the corporation could make money at the top of the income statement. Redux is a lithium-ion battery recycling business based in Germany that supports Redwood Materials’ efforts to expand its European footprint.
Much of its future revenue is expected to come from Redwood Materials’ $3.5 billion project in South Carolina. Once it’s finished, the factory should be able to make enough cathode and anode materials a year to power a million electric vehicles. Additionally, Redwood Materials can expand its business at this point and produce enough battery parts annually to service several million more electric vehicles.
Should I invest in Redwood Materials?
The shares are not available for purchase by regular investors because Redwood Materials has not yet held its IPO. But if the business decides to go public, it must file regulatory documents, which will give investors more information about its financials. Investors will then have a better idea of whether investing in the company is the right decision for them.
ETFs with exposure to Redwood Materials
Redwood Materials is not a publicly traded firm, so exchange-traded funds (ETFs) are not a way for investors to participate in the company. However, they are exposed to equity in industries where redwood materials work, such as recycling, waste management, and EV batteries.
- Lithium and Battery Technology ETF (Global X) (LIT -1.3%): The ETF consists of equities related to lithium mining as well as lithium battery production, including businesses that are involved in various stages of the lithium-ion battery supply chain. About 10% of the ETF’s assets are in Albemarle (ALB 0.93%), one of the world’s largest lithium producers. The ETF’s expense ratio is 0.75%.
- PBW 0.2 percent Invesco WilderHill Clean Energy ETF: This ETF provides investors with broad exposure to renewable energy-focused stocks through its 75 holdings. Two of the fund’s top holdings are battery equities, such as Solid Power (SLDP 2.67%) and Amprius Technologies (AMPX 0.0%); Brookfield Renewables (BEPC -0.89%), which manages a broad portfolio of green energy assets, also holds a large position. The ETF’s expense ratio is 0.66%.
- EVX is 0.11% of the VanEck Environmental Services ETF: The VanEck Environmental Services ETF is a fund that should be seriously considered by investors interested in the waste collection as well as recycling in general. Besides sector heavyweights like Republic Services (RSG 0.01%) and Waste Management (WM 0.1%), recycling specialist Darling Ingredients (DAR 2.97%) is one of the ETF’s top holdings. At 0.55%, the ETF’s net expense ratio is very low.
Conclusion of Redwood Materials Stock
It’s understandable that investors are interested in Redwood Materials because of its substantial market opportunities, progress toward building a large plant in South Carolina, and alliances with top automakers in the business. However, they will have to wait until they get the shares. Investors will need to look for alternative investment opportunities as the company is still privately held and there are no signs that an IPO is imminent. Fortunately, there are many options available, including Ford, several ETFs that focus on batteries, green energy, and waste management, and niche growth stocks like LanzaTech and PureCycle Technologies.
FAQ: Investing in Redwood Materials
Is Redwood Materials a publicly traded company?
No, Redwood Materials is currently a privately held company. This means that their shares are not available to the general public for purchase on the stock market.
Where can I buy Redwood Materials stock?
Because Redwood Materials is privately held, you cannot buy its stock through a traditional brokerage account. There may be some alternative investment platforms that deal with pre-IPO companies, but these can be risky and are not as regulated as public stock exchanges.
What is the stock price prediction for Redwood Materials?
Unfortunately, because Redwood Materials is privately held, there is no publicly available information to estimate a potential stock price. As they have not gone through an IPO (initial public offering), there is no set value placed on individual shares.
Who owns Redwood Materials?
Redwood Materials is a privately held company, but they have some notable investors. These include major corporations such as Ford, Goldman Sachs, and T-Roe Price. This shows the confidence of established players in the company’s future.
Who are Redwood Materials’ competitors?
Conventional miners: These companies provide virgin battery material, potentially reducing conversion to recycling.
Battery Recyclers: Companies like Ascend Elements, Li Industries, and Lohum are vying for a piece of the battery recycling pie.
