U.S.-based energy storage and battery materials provider Redwood Materials announced that it has raised $350 million in a Series E funding round to accelerate the growth of its clean energy storage and critical materials operations.
Founded in 2017 by Tesla co-founder and former CTO JB Straubel, Nevada-based Redwood provides energy storage at scale, and produces critical battery materials such as lithium, nickel, cobalt and copper, in order to help build one of the largest domestic sources of these materials. The company’s two key business lines include grid energy storage, in which it designs, integrates, and deploys large-scale low-cost storage systems using new and repurposed batteries, and critical materials, which involves recycling batteries at end-of-life, refining their critical minerals, and manufacturing critical materials for the U.S. supply chain. Redwood’s technology combines materials and manufacturing expertise with advanced power electronics and software, creating U.S.-made energy storage systems that reduce dependence on imported batteries.
According to Redwood, the new financing comes in an environment of intense domestic demand growth for critical materials and energy products combined with curtailment in international supplies, while electric energy availability has become a key strategic issue for AI infrastructure growth, and energy storage capacity is needed to help address the intermittency of domestic renewable generation and support industrial electrification.
With new investment, Redwood plans to expand its energy storage deployments, materials refining operations and engineering teams, helping to strengthen American energy leadership and critical mineral independence.
The funding round was led by Eclipse, with new investment from NVentures, the venture capital arm of NVIDIA, alongside other strategic backers.
In July, Redwood announced a new agreement with General Motors aimed at accelerating the deployment of energy storage systems based on both second-life battery packs and new batteries produced by General Motors.
In a post announcing its investment, Eclipse said:
“Redwood has become the U.S.’ only vertically integrated, closed-loop battery recycling, refining, and energy storage platform — a generational company redefining what it means to build industrial strength at scale. From its roots in battery recycling and cathode production to its recent expansion into large-scale energy storage, Redwood is now an essential part of America’s electric infrastructure.”
