Redwood attracts Google for its $425M Series E as AI power needs rise

Redwood Materials, a battery recycling and cathode production startup founded by former Tesla CTO JB Straubel, has raised $425 million in its Series E funding round, attracting new investors including Google alongside existing backers like Nvidia’s NVentures, Capricorn, and Goldman Sachs. This round, led by venture firm Eclipse, has pushed Redwood’s total capital raised to $4.9 billion and reportedly values the company at over $6 billion. The fresh capital is fueling Redwood’s expansion into energy storage solutions aimed at powering AI data centers and large industrial sites, a strategic pivot reflecting the surging electricity demand driven by AI, manufacturing, and electrification. Originally focused on creating a circular supply chain by recycling battery scrap from electronics and extracting key materials like nickel and lithium, Redwood has broadened its operations to include cathode production and a new business line called Redwood Energy. This venture repurposes used EV batteries into micro-grids to supply power for data centers, leveraging the company’s extensive inventory—over