SC lands massive $3.5B EV battery maker project, marked state’s largest deal

An automotive battery company plans to invest $3.5 billion and bring 1,500 jobs to South Carolina in what state leaders say is the largest economic development project in state history.

The company, Nevada-based Redwood Materials, will recycle anode and cathode battery components and remanufacture them into materials for electric vehicles battery makers at the Camp Hall Commerce Park in Berkeley County.

The Wednesday announcement tops a $1.7 billion investment planned by BMW in the Upstate, announced in October, and a national trend of shifting to electric vehicles..

“We’re ready to support this region and U.S. electrification by driving down battery costs, emissions and reducing reliance on foreign supply chains,” Redwood Materials Founder and CEO J.B. Straubel said in a statement.

Redwoods’ facility will be built on a 607-acre parcel of land that is being sold by state-owned electric utility Santee Cooper to the Palmetto Railways, a division of the state Department of Commerce. Redwood Materials will then lease the land and have the option to buy the property after the end of the lease, which will at the latest end in 2073.

South Carolina is also spending money on the project.

South Carolina plans to use $226 million in taxpayer money for the project, which includes buying the land from Santee Cooper. The commerce department will pay for site preparation and road, water and wastewater improvements, according to state Joint Bond Review Committee documents.

Berkeley County offered tax breaks to Redwoods to attract the company to the area, according to the Charleston Post and Courier.

“South Carolina’s commitment to creating a secure energy future and a competitive landscape for electric vehicle manufacturing, supported by a world-class workforce, fast and efficient logistics, zero-carbon electricity and a phenomenal site made it a smart decision for Redwood to invest here,” said Straubel, who was a former chief technology officer for Tesla.

The Redwood Materials deal follows other announcements of large electric vehicle plans in the state. BMW is investing $1.7 billion in its Upstate facility as the automaker transitions to manufacturing six electric vehicles in South Carolina by 2030. Electric vehicle battery maker Envision is spending $810 million in Florence County to supply battery cells to BMW.

Gov. Henry McMaster, who called the Redwood Materials plan “transformative,” recently ordered the South Carolina Department of Commerce to set up a “one-stop shop” to assist electric vehicle manufacturers interested in locating in the state.

“Redwood Materials’ record-breaking announcement shows that our state’s strategic plan to remain a top destination for automobile manufacturers and their suppliers as the industry innovates is working,” McMaster said in a statement.

Redwood Materials works with companies with operations in the U.S., such as Envision, Proterra, Volkswagen, Audi and Volvo, which has a plant at Camp Hall.

Redwood said it plans to start construction in the first three months of next year, with the first recycling process running by end of 2023.

The company also said it doesn’t plan to have any fossil fuel used in its processes, and says it has no plans to bring a gas line to its site as it aims to reduce carbon dioxide emissions from its manufacturing process.