U.S. State Approves $105m In Tax Incentives For Battery Plant

A massive lithium battery recycling plant has been awarded more than $105 million in tax incentives for expanding operations in northern Nevada.

The state Office of Economic Development approved incentives for Carson City-based Redwood Materials this week. It marks the second-largest capital investment in the office’s history, behind Tesla.

Founded by a former Tesla executive, Redwood has promised to invest more than $1 billion in its expansion plans, with the goal of boosting the transition from fossil fuels to lithium batteries more quickly by localizing the supply chain.

Redwood recovers 95% of the metals from batteries, including lithium, and manufactures battery components. The company has said it wants to keep what it calls a tight supply chain circle in Nevada.

“This investment in Nevada is an affirmation of the importance our state plays in the global lithium industry economy,” Gov. Steve Sisolak said in a statement, adding that the state expects a $5.6 billion return on the investment.

Redwood promises to create about 700 jobs with its expansion in Storey County, east of Reno. About one-third of the jobs are expected by mid-2025, and the average wage will be $32 per hour.