Goldman Sachs Asset Management and Capricorn Investment Group’s Technology Impact Fund have co-led a $1 billion Series D round for Redwood Materials, with participation from funds and accounts advised by T. Rowe Price Associates, Inc.
Redwood Materials, based in Carson City, Nev., and founded by Tesla co-founder J.B. Straubel, is building technology to recycle batteries, notably those used in electric vehicles, and to build sustainable materials for circular supply chains.
“An important element of growth stock investing at T. Rowe Price involves identifying and investing early in companies with potential to reshape the future. The shift to clean energy and electric mobility undoubtedly presents such an opportunity,” said Joe Fath, portfolio manager for the T. Rowe Price Growth Stock Fund. The Baltimore fund house lead the Series C round for Redwood Materials in 2021.
“Redwood’s vision, leadership, and execution places it at the forefront in this emerging sector,” he added. “With its commitment to creating a sustainable battery materials supply chain, we believe Redwood can be a durable growth company and help catalyze the next phase of clean energy adoption and deployment.”
Investors in Redwood Materials include Fidelity Management and Research, Canada’s Omers, Microsoft’s Climate Innovation Fund and Minneapolis-based Deepwater Asset Management. Redwood Materials has so far raised $1.8 billion from investors and also received a $2 billion loan commitment from the Department of Energy.
“As the electrification megatrend continues to accelerate, building a local sustainable battery materials supply chain is more important now than ever,” said Sebastien Gagnon, managing director for private equity at Goldman Sachs. “We believe the Redwood team is well-positioned to become a leader in the battery materials industry.”
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Capricorn’s managing partner, Dipender Saluja, termed Redwood Materials “one of the most pivotal companies” in the sustainability space and “crucial” for a clean energy future. “Our journey with JB, beginning with his transformative work at Tesla, feels like it’s come full circle with our investment in Redwood,” said Saluja.
Investment Powerhouse
With over $1.6 trillion in assets under management, T. Rowe Price has made over 300 portfolio investments and exited over 100. Last year, it revealed a significant focus on life sciences, investing in startups such as Senti, Convoy, Sionna Therapeutics and Tessera Therapeutics. The fund’s recent investments include Rapport Therapeutics, Genesis Therapeutics and ADARx Pharmaceuticals
Goldman Sachs’ venture division, GS Growth, invests out of a $476.4 million fund raised in 2016. It is led by the duo of Darren Cohen, based in New York, and Hong Kong-based Stephanie Hui. GS Growth’s portfolio exceeds 100, with nearly 30 exits. Its recent portfolio investments include BitGo, Limble CMMS, Fortanix, Malt, DataStax and eVisit.
