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Redwood Materials Raises $350 Million to Scale Second-Life Battery Storage for AI

Investors led by Eclipse with NVentures participating are backing a push that sources say values the company near $6 billion.

Overview

  • Redwood said the Series E proceeds will accelerate energy storage deployments, expand refining and materials production, and grow engineering and operations teams.
  • The company’s Redwood Energy unit repurposes used EV battery packs into modular systems for grid services and power-hungry data centers, with a commercial deployment launched with Crusoe in June.
  • Redwood reported stockpiling more than 1 gigawatt-hour of batteries suitable for storage as of June and targets 20 gigawatt-hours deployed by 2028.
  • Nvidia’s venture arm joined the round as Redwood positions its U.S.-built storage to support AI infrastructure and improve domestic energy resilience.
  • Beyond storage, Redwood recycles and supplies critical materials and cathode components to partners including Panasonic, GM, Toyota and Volkswagen, and it signed a July memorandum with GM to source LFP cells for large-scale systems.