Redwood Materials raises another $350M to power up its energy storage business

Redwood Materials, a battery recycling and cathode production company founded by former Tesla CTO JB Straubel, has raised $350 million in a Series E funding round led by Eclipse, with strategic investment from Nvidia’s NVentures. The company’s valuation is estimated at around $6 billion, up $1 billion from its previous valuation. The new capital will be used to expand Redwood’s energy storage business, increase refining and materials production capacity, and hire additional engineering and operations staff. Originally focused on creating a circular supply chain by recycling battery scrap and consumer electronics to extract valuable materials like cobalt, nickel, and lithium, Redwood supplies these materials to major customers such as Panasonic, GM, and Toyota. Recently, the company launched Redwood Energy, which repurposes retired EV batteries—those with remaining life unsuitable for recycling—into large-scale energy storage systems. These systems, powered by renewable sources like wind and solar, are designed primarily to serve AI data centers and industrial sites, with potential grid integration and compatibility