Building a domestic supply chain for electric vehicles has become a matter of national urgency, one underscored by the passage of the Inflation Reduction Act this year. Energy resilience, supply chain vulnerabilities and raw material supply are at the forefront of concerns for executives and government leaders. 

When JB Straubel founded Redwood Materials in 2017, he was among the first to foresee the looming challenges of an EV transition. 

As chief technology officer at Tesla, he saw a gap developing between the raw materials available to make EV components and growing demand for the cars. He thought battery recycling would play a substantial role in providing a patch, forging a circular economy and reducing the pollution that comes from mining for raw materials. 

“When we started, it felt way too early,” said Straubel, 46. “Now we’re in the middle of it and it feels like everyone is panicking and running around. … There’s awareness and pressure to fix that, but it’s going to take a while to catch up.”

Redwood accelerated those efforts this month, reaching an agreement to provide 100 gigawatt-hours of cathode material for lithium ion batteries for a Panasonic Energy Co. factory in Kansas. It’s enough for approximately 1 million EVs, and Redwood says it’s the first time cathode material will be made at such scale in the United States.

By 2030, Redwood expects to be producing 500 gigawatt-hour worth of material, which could underpin 5 millionEVs. Beyond its Panasonic deal, the company is working with a growing roster of automakers, which includes Ford, Toyota, Volkswagen and Volvo. 

Redwood represents a third act for Straubel. Before Tesla, he was the co-founder and chief technical officer at aerospace startup Volacom, which designed high-altitude electric aircraft. There, Straubel created a long-endurance propulsion platform the company licensed to Boeing.

When Straubel pondered what he could to do after Tesla that would have a lasting impact, he settled on ensuring the necessary raw materials for EVs could be found using sustainable methods.

“Energy and transportation are moving toward sustainability a bit more rapidly, he said. “It’s moved to a scale where big companies and billions of dollars are driving it now. But I don’t feel the material side of that world and in all these products is fully, or not even remotely, addressed. It’s kind of barely beginning.”