Redwood Materials Secures $425 Million to Expand U.S. Energy Storage and Battery Recycling

Redwood Materials has completed the final close of its Series E funding round, raising a total of $425 million to accelerate its energy storage business and expand domestic battery recycling and critical minerals operations, the company said in its official statement.

The round builds on a previously announced $350 million raise and reflects heightened investor interest in energy infrastructure as electricity demand climbs across the United States. Redwood said the additional capital brings continued backing from existing investors Capricorn and Goldman Sachs Alternatives, while adding Google as a new strategic participant.

Founded by former Tesla executive JB Straubel, Redwood Materials has focused on creating a closed-loop battery supply chain in North America, recovering lithium, nickel and other critical materials from end-of-life batteries and manufacturing scrap. The company has gradually moved downstream, positioning itself as both a recycler and a supplier of battery components and energy storage systems. Data published by the U.S. Energy Information Administration show power consumption from data centers and electrification rising at the fastest pace in decades, sharpening the need for grid-scale storage.

Redwood said the Series E proceeds will be directed toward scaling its energy storage platform while strengthening recycling capacity and refining operations tied to critical minerals. Observers note that energy storage has become a strategic priority for utilities and large technology companies seeking to manage peak loads from artificial intelligence, data centers and advanced manufacturing.

Industry groups argue that recycling will be essential to meeting long-term battery material demand, particularly as electric vehicle adoption increases and scrap volumes rise later this decade. Redwood’s integrated approach, they say, could help reduce dependence on imported materials while stabilizing supply for grid and mobility applications.

Looking ahead, market participants expect competition to intensify as more capital flows into energy storage and battery recycling. Redwood’s expanded war chest positions it to scale quickly, but execution and cost control will remain critical as projects move from pilot to commercial scale.

Source: Redwood Materials

SUNSHINE Spotlight: Redwood’s $425 million Series E underscores growing investor confidence that energy storage and battery recycling are becoming core pillars of the modern U.S. power system.