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Redwood Materials Raises $350 Million to Scale Grid Battery Storage

The new funding backs a rapid rollout of US-built systems using repurposed EV batteries to supply power-hungry AI data centers.

Overview

  • Redwood closed a Series E round led by Eclipse Ventures that includes a strategic investment from Nvidia’s NVentures.
  • Funding will expand energy storage deployments, increase refining and materials production capacity, and add engineering and operations staff.
  • People familiar with the deal say the round pegs Redwood’s valuation at about $6 billion, which the company did not confirm.
  • Redwood Energy repurposes retired EV packs into modular storage for AI data centers and industrial sites, targeting 20 GWh deployed by 2028.
  • The company says it recovers over 70% of used battery packs in North America and had more than 1 GWh of batteries stockpiled for storage as of June.