On July 24, 2019, Elon Musk announced a significant change in the Tesla management team. JB Stravel, the co-founder and Chief Technology Officer, transitioned to a senior advisor role. Stravel had worked alongside Musk for 15 years and played a crucial role in transforming Tesla from a startup into a massive public company.
Stravel's departure from Tesla was not due to a lack of success, but rather an opportunity he saw to help solve a significant environmental problem: the growing issue of e-waste, or electronic waste, caused by the rapid growth of electric vehicles (EVs). Stravel observed firsthand that the EV industry, while promising, created a new problem due to the difficulty and environmental impact of recycling old lithium-ion batteries. This led him to found a new company, Redwood Materials, with the goal of creating a sustainable battery and developing a recycling solution for used batteries.
Redwood Materials aims to build a closed-loop battery manufacturing ecosystem, which essentially involves recycling old batteries into new ones. The technology required for this is complex and the business is capital-intensive, but investors believe in the opportunity. Stravel raised $700 million at a $3.7 billion valuation from Goldman Sachs, Bill Gates, and Jeff Bezos.
Redwood's first factory is up and running in Nevada and can process 60 tons of batteries every single day, equivalent to just under 50,000 electric vehicle batteries per year. Despite being a young company, Redwood has already captured 50% of the lithium-ion battery recycling market and could do $90 million in revenue this year.
Stravel's long-term vision for Redwood extends beyond battery recycling. He plans to produce critical components for battery cells, such as copper foil, and even envisions a future where no mining is needed to make batteries, as old batteries will provide everything needed to make new ones. Stravel's approach to reducing environmental impact is not just about the environment; it could also make EV technology more cost-effective, making it competitive with traditional gas-powered cars.
In summary, JB Stravel's departure from Tesla and the founding of Redwood Materials represent a significant step towards addressing the environmental challenges posed by the growing EV industry. His long-term vision for a closed-loop battery manufacturing ecosystem has the potential to transform the way we think about battery production and recycling.
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