A Tesla founder started an EV battery recycling company that's on pace to make $200 million a year

• JB Straubel's Redwood Materials has been in the recycled battery business for seven years.
• He told The Wall Street Journal the company is on track to make $200 million in revenue this year.
• The company aims to produce enough battery materials for 1 million electric vehicles annually.

Tesla cofounder JB Straubel said his electric vehicle battery-recycling startup, Redwood Materials, will make hundreds of millions in revenue this year.

Straubel disclosed Redwood Materials' estimated revenue during an interview with The Wall Street Journal, saying his company will rake in about $200 million.

Straubel launched Redwood Materials in 2017 to create a "remanufacturing economy," which refers to extracting raw materials from used batteries and returning them to production after processing them. The company, based in Northern Nevada, hopes this can prompt a shift away from mining minerals and bolster the EV industry's sustainability.

"To make batteries sustainable and affordable, we need to close the loop at the end of life. We're localizing a global battery supply chain and producing battery materials in the US for the first time — from as many recycled batteries as possible," the company's website says.

Redwood Materials has extracted enough nickel and lithium from recycled batteries to "supply 20 gigawatt hours of lithium-ion batteries, or roughly equivalent to 250,000 electric vehicles," the Journal reported.

The company aims to produce enough battery materials for 1 million EVs annually.

Representatives for Redwood Materials did not respond to a request for comment from Business Insider.

Straubel's efforts come at a time when EVs are struggling in the United States despite Tesla's presence and popularity in overseas markets.

EVs have gained traction in countries like China, where advisory firm Automobility says about 27% of new vehicle sales in 2022 were electric.

Americans have been slower to warm up to EVs.

A June study by McKinsey & Company found that 46% of surveyed EV owners in the United States said they would likely return to gas-powered vehicles. Globally, some reasons consumers leaned away from EVS included charging options, high costs, and more.

Although President Joe Biden provided a $7,500 EV tax credit, Donald Trump's incoming administration is considering revoking it.