FOR IMMEDIATE RELEASE
Contact: Gregory Bortolin,
Director of Communications
December 1, 2022
CARSON CITY, Nev. – The Nevada Governor’s Office of Economic Development (GOED) Board of Directors approved Redwood Materials $105,615,082 abatement today after the company announced the second largest capital investment since GOED’s inception more than a decade ago – $1.1 billion.
“This investment in Nevada is an affirmation of the importance our state plays in the global lithium industry economy,” said Governor Steve Sisolak. “While the state is issuing a $105 million abatement, we are projecting the return on investment will be $5.6 billion for Nevada. Redwood Materials is a great company and I’m optimistic that it will only increase its footprint in Nevada.”
Redwood Materials plans to expand its current large scale battery materials facility in Storey County. Redwood’s mission is to build a circular supply chain to power a sustainable world and accelerate the reduction of fossil fuels. This focus is critical to the future of transportation and the electric grid. When the facility comes online, it will be the first time these critical battery materials, which account for 65 percent of the cost of a battery have been manufactured at scale in the United States.
“Redwood is committed to supplying U.S. battery manufacturers with sustainable, domestic materials. Our investment in Nevada allows us to scale anode and cathode materials to support this transition while creating jobs and investing in the community,” said JB Straubel, Founder & CEO of Redwood Materials. “We thank the State of Nevada for recognizing the importance of this project in establishing a domestic battery supply chain and securing American leadership in both battery recycling and critical materials production.”
Today’s supply chain requires critical materials move 50,000 miles before making their way into a cell, posing enormous environmental, economic, and geopolitical risks. Redwood is creating a closed-loop domestic supply chain for lithium-ion batteries across collection, refurbishment, recycling, refining, and manufacturing of sustainable battery materials. The company recovers more than 95 percent of the metals (including nickel, cobalt, lithium, and copper) from batteries, and uses these to remanufacture anode and cathode components. The company then supplies these components back to the U.S. battery cell manufacturers without the metals ever leaving the country. Additionally, the auto industry has been ramping up production of electric vehicles to meet a demand surge, driving up orders for batteries and raw materials that have limited supply. By 2025, Redwood expects to produce enough cathode materials and copper foil to support 1 million electric vehicles annually.
“Nevada continues to attract companies who are making significant investments, creating good jobs, and expanding our tax base,” said Michael Brown, GOED Executive Director. “One of those companies is making $1.1 billion in capital investments, another is paying an average wage of $58.58, and yet another will operate a land-based salmon production facility.”
The GOED Board approved five companies in total, including Redwood, that will receive $124,947,733 in tax abatements. In return these companies are required to create 492 jobs in the next two years at an average weighted hourly wage of $45.71. That figure is expected to grow to 990 in five years. Additionally, these companies will make capital investments of $1,318,452,304 in the first two years of operation and generate $256,021,560 in net new tax revenues over the next 20 years.
Since January of 2019, the 96 companies that have received abatements will create 14,652 jobs over five years. These companies are making $3.9 billion in capital investments and will generate $1.5 billion in new net tax revenues.
The companies approved for abatements today include:
About the Governor’s Office of Economic Development
Created during the 2011 session of the Nevada Legislature, the Governor’s Office of Economic Development is the result of a collaborative effort between the Nevada Legislature and the Governor’s Office to restructure economic development in the state. GOED’s role is to promote a robust, diversified and prosperous economy in Nevada, to stimulate business expansion and retention, encourage entrepreneurial enterprise, attract new businesses and facilitate community development.