Redwood Materials lands Google as a new investor

Redwood Materials has successfully attracted Google as a new investor, concluding an expanded funding round that values the battery recycling and energy storage company at over $6 billion. This significant development highlights the increasing interest from major tech companies in power infrastructure tailored for the AI era. On Wednesday, the Nevada-based startup announced the final close of its Series E financing, with total funds raised reaching $425 million. This amount was increased from the previously stated $350 million due to strong demand among investors. Google joined the round alongside existing investors, including Capricorn and Goldman Sachs. The addition of Google to Redwood's roster of investors follows Nvidia's earlier investment through its venture arm, NVentures, further emphasizing the tech giant's growing engagement in the energy sector. This trend signals a belief that Redwood's energy storage solutions—designed to repurpose used electric vehicle batteries for power storage—could become vital infrastructure in response to soaring electricity demands driven by AI, data centers, and broader electrification efforts. Founded by former Tesla co-founder JB Straubel, Redwood Materials initially focused on recycling lithium-ion batteries and recovering essential metals such as lithium, nickel, and cobalt. Recently, the company has ventured into grid-scale energy storage with its new division, Redwood Energy, which stabilizes power supply using second-life EV batteries to support energy-intensive data centers. Redwood argues that energy storage is no longer just an option; it's a necessity as AI workloads increasingly stress existing power grids. The newly acquired capital will enable Redwood to scale its energy storage solutions while continuing to invest in recycling and processing critical minerals domestically. With Google's backing, Redwood is strategically positioning itself at the crossroads of AI infrastructure, energy security, and domestic supply chains—an alignment that investors are increasingly recognizing as crucial as the power requirements of the AI economy continue to grow.