Redwood Materials lands Google as a new investor

"The Nevada-based startup said Wednesday it completed the final close of its Series E financing, bringing the total raised to $425 million. The round was increased from a previously announced $350 million amid strong investor demand. Google joined the final closing of the round alongside existing backers, including Capricorn and Goldman Sachs. Google's participation adds another tech giant to Redwood's cap table, following Nvidia's investment earlier in the round through its venture arm NVentures."

"The growing interest reflects a bet that Redwood's energy storage business - which repurposes used electric-vehicle batteries to store power - could become critical infrastructure as electricity demand surges from AI, data centers, and broader electrification. Founded by Tesla cofounder JB Straubel, Redwood Materials originally built its business on recycling lithium-ion batteries and recovering key metals, including lithium, nickel, and cobalt."

"More recently, it has expanded into grid-scale energy storage through a new unit called Redwood Energy, which uses second-life EV batteries to stabilize power supply and support energy-hungry data centers. The company has argued that energy storage is no longer optional but essential as AI workloads strain existing grids. Redwood says the new capital will help it scale its energy storage platform while continuing to invest in recycling and critical minerals processing in the US."

Redwood Materials completed an upsized Series E financing totaling $425 million, valuing the company at more than $6 billion. Google joined the final close alongside existing investors including Capricorn, Goldman Sachs, and earlier investor Nvidia via NVentures. The company repurposes used electric-vehicle batteries and recovers critical battery metals such as lithium, nickel, and cobalt. Redwood has expanded into grid-scale energy storage with Redwood Energy, using second-life EV batteries to stabilize supply and support data centers. The firm positions energy storage as essential as AI and electrification increase electricity demand, and will use the capital to scale storage and continue US-based recycling and minerals processing.

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