Energy
Tesla co-founder’s battery recycling firm gets a cushy $700M investment round
Redwood Materials, a battery recycling company founded by Tesla co-founder J.B. Straubel, has announced a $700 million investment round from external investors. The round was led by funds and accounts advised by T. Rowe Price Associates, Inc., and includes contributions from Goldman Sachs Asset Management, Baillie Gifford, Canada Pension Plan Investment Board, and Fidelity. Additionally, Series B investors included Amazon’s Climate Pledge Fund, Capricorn’s Technology Impact Fund, Breakthrough Energy Ventures, Valor Equity Partners, Emerson Collective, and Franklin Templeton.
In an attempt to keep up with the growing market of car manufacturers and other transportation companies transitioning to electrification, Redwood knows that the demand for lithium-ion batteries and other materials crucial to their operation will need to be reused. Redwood’s ultimate goal is to create a “closed-loop supply chain for electric vehicles and energy products, making them truly sustainable and continuing to drive down the costs for batteries,” the company said.
Credit: Redwood Materials
After opening up a new facility near Tesla’s Gigafactory Nevada earlier this year, Redwood plans to expand its recycling efforts to make batteries more Earth-friendly and cost-effective, a plan that Straubel outlined.
“With this capital, Redwood will be able to accelerate our mission to make battery materials sustainable and affordable, accomplishing the change we need in the world with a circular economy,” Straubel, CEO of Redwood Materials, said. “We’re grateful for these strategic investors who bring decades of experience investing in and supporting companies that build transformative technology and who understand the mission and value of what Redwood is working to achieve.”
Battery manufacturing efforts are expanding through third-party suppliers and automotive manufacturers. Tesla is one of the most notable, holding several partnerships with companies like Panasonic, LG Chem, and CATL for its battery needs. Other companies, like Volkswagen, have also outlined massive battery cell manufacturing goals through the next decade and beyond, preparing for a large-scale offensive as the race for EVs continues.
However, Redwood’s recycling efforts would only improve the situation for these automakers. Instead of scraping hazardous materials from batteries after their lifespan ends, the batteries can be reused and implemented into packs after being recycled. Not only would this improve the availability of battery cells for carmakers, but it would also create a more sustainable environment in the battery manufacturing field and improve the cost of electric cars. The most expensive part of an electric vehicle is the battery pack, and due to the limited availability of battery cells, costs will only improve when more are available. With the production of new cells from various manufacturers and the recycling of old cells from companies like Redwood, costs will decrease, making electric vehicles more affordable in the long run.
“We are excited to begin this investment in the talented and accomplished team at Redwood as they expand their pursuit of building a world-class sustainable, closed-loop battery supply chain for electric vehicles,” T. Rowe Price Growth Stock Fund portfolio manager Joe Fath said. “In our view, the need for these materials will grow exponentially over time as we enter the era of de-carbonization. We believe Redwood is well-positioned to be at the forefront of tackling this emerging and critically important problem.”
Redwood’s current workload includes developing processes to produce battery materials that can be resold into the battery supply chain, making elements of the cell more readily available. Redwood has a currently active partnership with Panasonic at the Tesla Gigafactory in Nevada, along with other collaborations with Envision AESC in Tennessee, the company responsible for the Nissan LEAF battery packs, and Amazon for recycling lithium-ion batteries and other e-waste from their massive business.
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Energy
Tesla Energy gains UK license to sell electricity to homes and businesses
The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.
Tesla Energy has received a license to supply electricity in the United Kingdom, opening the door for the company to serve homes and businesses in the country.
The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.
According to Ofgem, the license took effect at 6 p.m. local time on Wednesday and applies to Great Britain.
The approval allows Tesla’s energy business to sell electricity directly to customers in the region, as noted in a Bloomberg News report.
Tesla has already expanded similar services in the United States. In Texas, the company offers electricity plans that allow Tesla owners to charge their vehicles at a lower cost while also feeding excess electricity back into the grid.
Tesla already has a sizable presence in the UK market. According to price comparison website U-switch, there are more than 250,000 Tesla electric vehicles in the country and thousands of Tesla home energy storage systems.
Ofgem also noted that Tesla Motors Ltd., a separate entity incorporated in England and Wales, received an electricity generation license in June 2020.
The new UK license arrives as Tesla continues expanding its global energy business.
Last year, Tesla Energy retained the top position in the global battery energy storage system (BESS) integrator market for the second consecutive year. According to Wood Mackenzie’s latest rankings, Tesla held about 15% of global market share in 2024.
The company also maintained a dominant position in North America, where it captured roughly 39% market share in the region.
At the same time, competition in the energy storage sector is increasing. Chinese companies such as Sungrow have been expanding their presence globally, particularly in Europe.
Energy
Tesla Powerwall distribution expands in Australia
Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.
Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.
Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.
“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.
“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”
Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.
“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”
Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.
Energy
Tesla Megapack Megafactory in Texas advances with major property sale
Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet.
Tesla’s planned Megapack factory in Brookshire, Texas has taken a significant step forward, as two massive industrial buildings fully leased to the company were sold to an institutional investor.
In a press release, Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet. The properties are 100% leased to Tesla under a long-term agreement and were acquired by BGO on behalf of an institutional investor.
The two facilities, located at 100 Empire Boulevard in Brookshire, Texas, will serve as Tesla’s new Megafactory dedicated to manufacturing Megapack battery systems.
According to local filings previously reported, Tesla plans to invest nearly $200 million into the site. The investment includes approximately $44 million in facility upgrades such as electrical, utility, and HVAC improvements, along with roughly $150 million in manufacturing equipment.
Building 9, spanning roughly 1 million square feet, will function as the primary manufacturing floor where Megapacks are assembled. Building 10, covering approximately 600,000 square feet, will be dedicated to warehousing and logistics operations, supporting storage and distribution of completed battery systems.
Waller County Commissioners have approved a 10-year tax abatement agreement with Tesla, offering up to a 60% property-tax reduction if the company meets hiring and investment targets. Tesla has committed to employing at least 375 people by the end of 2026, increasing to 1,500 by the end of 2028, as noted in an Austin County News Online report.
The Brookshire Megafactory will complement Tesla’s Lathrop Megafactory in California and expand U.S. production capacity for the utility-scale energy storage unit. Megapacks are designed to support grid stabilization and renewable-energy integration, a segment that has become one of Tesla’s fastest-growing businesses.
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