Nevada-based Redwood Materials has completed the final close of its Series E funding round, lifting the total raised to $425 million to power AI data centres and industrial sites.
The round includes continued backing from existing investors Capricorn and Goldman Sachs Alternatives, and brings in Google as a new investor. Strong investor demand pushed the round beyond the $350 million it announced earlier.
The company has not disclosed its valuation, but a person familiar with the round said its post-money valuation is above $6 billion, higher than its previous funding round, according to the reports. The latest raise brings Redwood’s total private funding to $2.3 billion.
Building a circular supply chain for batteries
Redwood was founded in 2017 by JB Straubel to build a circular battery supply chain. The company initially focused on recycling scrap from battery manufacturing and consumer electronics, recovering materials such as lithium and nickel and supplying them to battery makers, including Panasonic.
Over time, Redwood expanded beyond recycling. It added cathode production and, last year, launched an energy storage business that gives used EV batteries a second life. These batteries are repurposed into microgrids that can supply power to AI data centres and large industrial customers.
That newer business has become a key draw for investors. AI, data centres, manufacturing, and electrification are sharply increasing electricity demand, making large-scale energy storage increasingly critical.
According to the company, it recovers more than 70% of used or discarded battery packs in North America, many of which are suitable for reuse in energy storage.
The company previously said it had more than 1 gigawatt-hour of batteries in inventory, with several more expected, and aims to deploy 20 gigawatt-hours of grid-scale storage by 2028.
“Together, these investments position Redwood to lead grid reliability, energy security, and the next phase of modern power infrastructure. We are deploying capital with discipline and relentlessly focused on execution as we continue scaling our domestic battery ecosystem,” says the company.
What’s next?
The funding will help scale both its energy storage platform and its recycling and critical minerals operations, strengthening what it describes as a domestic battery ecosystem.
