(Bloomberg) —
Redwood Materials Inc. raised $350 million in a Series E financing round that values the battery recycling company led by Tesla Inc. co-founder JB Straubel at more than $6 billion.
The round was led by Eclipse, a venture capital firm focused on startups in real-world industries like manufacturing, and NVentures, the venture arm of Nvidia Corp., Redwood said in a statement Thursday.
The round values Redwood at more than $6 billion, according to people familiar with the matter, who asked not to be named because the information is private.
Redwood plans to use the fresh financing to speed energy-storage deployments, refining capacity and its engineering and operations teams, the company said.
Founded by Straubel in 2017, Redwood started out with a mission to onshore critical pieces of the EV battery supply chain by recycling batteries from aging electric vehicles and consumer electronics. With US EV sales failing to meet expectations and the Trump administration eliminating EV incentives, the company is now working to fulfill demand for clean, reliable energy to fuel data centers powering artificial intelligence.
“Many people think of us as a battery recycler only, but on top of that platform we’ve built a growing energy storage business that’s really quite exciting,” Straubel said in an interview with Bloomberg Television Thursday.
Redwood has said that adding batteries to power grids is key to fulfilling demand from energy-hungry data centers. The EV batteries it processes have reached the end of their useful life for transportation. But they’re still usable for grid-scale storage, which is the focus of the company’s Redwood Energy unit.
And while the Trump administration has ended government support for electric cars, its focus on securing critical minerals it deems essential to national security is a boon to Redwood and its business of extracting and processing battery metals, Straubel said.
“We’re a quite substantial source of cobalt, nickel and lithium and copper, all of which is domestically sourced,” he said. “From that point of view I’m perhaps even more excited about the core recycling business than I have been in the past.”
(Adds comment from Redwood CEO)
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