Car battery recycling startup, Redwood Materials, co-founded by one of Tesla's (TSLA) - Get Report former top executives, received backing on Thursday from Amazon's (AMZN) - Get Report $2 billion venture investment fund to combat climate change.
The Climate Pledge Fund is a venture investment program backing sustainable technologies and services that will help Amazon and other companies reach net-zero carbon emissions by 2040.
Redwood Materials, co-founded by Tesla's former chief technology officer, JB Straubel, will help Amazon recycle electric vehicle batteries and reuse their components, the company said. Amazon plans to have as many as 100,000 of its own electric delivery vans on the road by 2030.
Amazon also lent its support to startups like Canada-based CarbonCure Technologies which licenses carbon-capture technology to cement companies for a monthly fee. The company will help Amazon lower its carbon footprint for its office spaces including its second headquarters under construction in Virginia.
“The Climate Pledge Fund invests in visionary companies whose products and services can empower a low carbon economy,” said Jeff Bezos, Amazon founder and CEO.
“We are investing in a group of companies that are channeling their entrepreneurial energy into helping Amazon and other companies reach net zero by 2040 and keep the planet safer for future generations.”
Rivian, a startup maker of electric trucks, won Amazon's huge order for vehicles last year along with $440 million in direct investment. It won further investment from the e-commerce giant in today's round.
Amazon also participated in Rivian’s latest investment round in July, and with proceeds from that investment, is further developing and integrating its connected electric platform with Amazon’s last-mile delivery network, the company said.
Smart motor startup, Turntide Technologies, also received investment from the Seattle company and Amazon is piloting Turntide’s motors in a number of its buildings to reduce electricity usage.
Amazon said it will also invest in Pachama, a climate technology company that is democratizing access to nature-based carbon markets. Pachama's technology helps companies to support reforestation and forest conservation projects. Pachama will help Amazon monitor and evaluate nature-based solutions.
Shares of Amazon ended off $69.37, or 2.25%, at $3008.73 on Thursday.