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Redwood Materials Raises $350 Million to Scale Second-Life Grid Storage With Nvidia Backing

The raise accelerates Redwood’s push to repurpose used EV packs into U.S.-built grid batteries for energy-hungry data centers.

Overview

  • The Series E round was led by Eclipse with participation from Nvidia’s NVentures, and people familiar with the deal place Redwood’s valuation at about $6 billion.
  • Redwood says the capital will expand energy storage deployments, increase refining and materials production capacity, and grow engineering and operations teams.
  • The company’s Redwood Energy unit, launched in June, repurposes retired EV batteries into large-scale systems serving AI data centers and industrial sites.
  • Redwood has already deployed second-life systems, including a 63 MWh microgrid powering two data centers, and reports a stockpile exceeding 1 GWh of reusable batteries.
  • Recovering key materials such as lithium, nickel, cobalt, and copper for partners including Panasonic, GM, and Toyota, Redwood targets 20 GWh of deployed storage by 2028 to bolster domestic supply.