Redwood Materials has added Alphabet’s Google as an investor in an expanded Series E funding round that values the battery recycling and energy storage company at more than $6 billion.
The company, led by Tesla co-founder JB Straubel, raised a total of $425 million after reopening its Series E round, according to a statement issued on Wednesday. This marks an increase from the $350 million secured when the round was first announced in October, which was led by venture capital firm Eclipse and NVentures, the venture arm of Nvidia.
People familiar with the matter said the latest financing continues to value Redwood at more than $6 billion, although the company declined to disclose its valuation. A Google spokesperson confirmed the company’s participation in the round without providing further details.
Founded in 2017, Redwood was established to onshore critical parts of the electric vehicle battery supply chain by recycling end-of-life batteries from EVs and consumer electronics. However, with US EV sales falling short of expectations and federal incentives being rolled back under the Trump administration, the company has increasingly shifted its focus towards grid-scale energy storage.
In November, Redwood cut dozens of jobs, representing around 5% to 6% of its workforce, as it pivoted towards meeting growing demand for large-scale energy storage batteries. The latest funding will be used to accelerate storage deployments while continuing to support its critical minerals and recycling operations.
The company said rising electricity demand driven by artificial intelligence, data centres, manufacturing and electrification is reshaping its strategy. “As electricity demand surges — driven by AI, data centres, manufacturing and electrification — energy storage is no longer optional; it is essential infrastructure,” Redwood said.
Google’s investment comes as major technology companies seek to secure long-term access to clean and reliable power for data centres. Alongside Amazon and Microsoft, Alphabet has been stepping up investments in energy infrastructure. In December, Alphabet agreed to acquire clean energy developer Intersect Power for $4.75 billion in cash, alongside the assumption of existing debt.
