Battery recycler Redwood Materials hits $6B valuation with $350M raise for energy storage — TFN

Battery recycling firm Redwood Supplies has secured $350 million in a Sequence E spherical, which values the corporate at $6 billion. It was led by Eclipse Ventures, with participation from Nvidia’s NVentures, to scale its new power storage enterprise. The funding spherical strengthens its push to repurpose electrical car (EV) batteries to energy the world’s increasing AI infrastructure.

Concept born from recycling mission

Based in 2017 by Tesla co-founder JB Straubel, Redwood Supplies began by recycling waste from shopper electronics and EV batteries. By recovering key minerals equivalent to nickel, cobalt, and lithium, Redwood constructed a closed-loop system that reduces reliance on mining and helps companions like Panasonic, GM, and Toyota.

What started as a recycling mission has advanced right into a full-fledged supplies manufacturing and power storage enterprise. With this newest capital infusion, Redwood will increase its refining services, enhance supplies output, and recruit further engineers and operational workers to help rising demand for sustainable power options.

Second life for EV batteries

Redwood’s latest division, Redwood Vitality, faucets right into a beneficial but usually neglected useful resource, the retired EV batteries that also have years of usable capability left. As a substitute of instantly recycling them, the corporate repurposes these batteries to retailer and distribute renewable power.

The methods mix wind, photo voltaic, and reused EV batteries to ship off-grid energy to AI knowledge facilities and industrial websites, the place power demand has surged as a result of computing energy required for coaching large-scale fashions. These hybrid methods may also combine with pure fuel generators or future nuclear-powered mills, positioning Redwood as a key participant in large-scale, versatile power storage. 

Redwood at present recovers greater than 70% of all used or discarded EV battery packs in North America. As of mid-2025, Redwood had amassed over 1 gigawatt-hour of batteries appropriate for power storage and plans to scale that to twenty GWh by 2028.

Ultimate ideas 

With the worldwide race to construct energy-hungry AI knowledge facilities accelerating, Redwood’s strategy provides a sustainable energy bridge between transportation electrification and digital infrastructure. Its mannequin not solely extends the lifetime of EV batteries but in addition helps stabilise grids strained by surging AI and industrial power calls for, turning yesterday’s batteries into tomorrow’s energy supply.