Battery recycling and cathode production company Redwood Materials has secured $350 million in funding to support its expanding energy storage business aimed at powering the AI data center boom.
The latest Series E funding round, spearheaded by Eclipse, with a strategic investment from Nvidia’s venture capital arm, NVentures, has boosted Redwood Materials’ valuation to approximately $6 billion. The company, led by former Tesla CTO JB Straubel, plans to utilize the funds to enhance its energy storage business, refine materials production capacity, and recruit more engineering and operational staff.
Established in 2017, Redwood Materials initially focused on creating a circular supply chain for batteries by recycling scrap from battery cell production and consumer electronics. This sustainable approach involves extracting materials like cobalt, nickel, and lithium from discarded batteries, which are then supplied back to customers such as Panasonic, GM, and Toyota.
In addition to its core recycling business, Redwood Materials has expanded into cathode production and recently introduced an energy storage division, Redwood Energy. The company leverages retired EV batteries to provide power to AI data centers and industrial sites, creating off-grid systems connected to renewable energy sources like wind and solar.
With a substantial supply of EV batteries, Redwood Materials aims to deploy 20 gigawatt-hours of grid-scale storage by 2028, becoming a key player in repurposing used EV battery packs. The company’s innovative approach aligns with sustainability goals and addresses the increasing demand for energy storage solutions in the tech industry.
