In a major push to fuel the next wave of clean power for AI data centers, Redwood Materials has raised $350 million in new funding to expand its fast-growing energy storage and materials production business.
The Series E round was led by Eclipse Ventures, with strategic participation from NVentures, the venture arm of Nvidia — signaling the growing convergence between energy infrastructure and AI computing. Sources close to the deal told TechCrunch the round values Redwood at roughly $6 billion, up $1 billion from its last valuation.
The new funding will support scaling its energy storage operations, expanding battery materials refining capacity, and hiring across engineering and operations.
From Battery Recycling to Powering the AI Boom
Founded in 2017 by former Tesla CTO JB Straubel, Redwood Materials began as a battery recycling pioneer, reclaiming critical minerals like lithium, cobalt, and nickel from consumer electronics and EV scrap to build a circular battery supply chain.
Today, Redwood Materials supplies these sustainable materials to automakers and battery producers such as Panasonic, GM, and Toyota, helping reduce reliance on mining and overseas supply chains.
But its newest venture — Redwood Energy — could be its most transformative yet.
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Giving Old EV Batteries a New Life
Rather than sending every used EV battery straight to recycling, Redwood Materials realized many still have years of usable life left. The company now repurposes these retired EV batteries into grid-scale energy storage systems that can power AI data centers, factories, and renewable energy projects.
“AI is driving massive energy demand — and our batteries can help meet it sustainably,” said Straubel.
The system links repurposed EV batteries with solar and wind generation to create off-grid or hybrid power systems capable of supporting high-density compute workloads. These modular energy systems can also tie into natural gas turbines or future nuclear microreactors for even greater resilience.
A Growing Energy Empire
Redwood already recovers over 70% of all used or discarded battery packs in North America, creating a vast supply pipeline for both recycling and energy storage. As of mid-2025, the company holds more than 1 GWh of batteries ready for deployment in storage projects.
By 2028, Redwood plans to deploy 20 GWh of grid-scale storage, putting it on course to become North America’s largest repurposer of used EV batteries.
That scale positions Redwood not just as a battery recycler — but as a new kind of energy company, bridging clean tech, industrial recycling, and digital infrastructure.
Powering a Circular Future
The $350M raise underscores growing investor confidence in battery circularity as a cornerstone of the clean energy transition — especially as AI, EVs, and renewables collide to reshape global power needs.
With Straubel at the helm, Redwood’s evolution from recycling startup to full-stack clean energy platform looks like a natural extension of his mission at Tesla: closing the loop between electrification and sustainability.
“We started Redwood to make clean energy truly circular,” said Straubel. “Now, we’re proving that even yesterday’s batteries can power tomorrow’s technology.”
About Redwood Materials
Redwood Materials is a Nevada-based technology company building a sustainable battery supply chain for electric vehicles and clean energy. Founded in 2017 by JB Straubel, Redwood recycles end-of-life batteries and manufacturing scrap to extract valuable materials and reintroduce them into new batteries. The company also develops large-scale energy storage systems using repurposed EV batteries to power AI data centers and industrial operations, enabling a more sustainable and circular clean energy ecosystem.
