Stock photo by Vecteezy
 

US-based energy storage and battery materials provider Redwood Materials announced that the final close of its Series E financing, bringing total capital raised in the round to $425 million.

The final close significantly expands the Series E for the company, which announced in October that it had reached $350 million. Redwood Materials said that the increase was driven by “strong demand,” with the new capital to be used to accelerate its energy storage platform and strengthening its integrated recycling and critical minerals business.

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 US supply chain.

The Series E final close included participation from existing investors Capricorn (CRNCY) and Goldman Sachs (GS), and added Google (GOOGL) as a new investor. Google has been scaling up its energy storage investments, including a recent strategic investment and partnership with energy storage startup Energy Dome, as part of the tech company’s efforts to achieve its ambition to run its entire business on carbon-free energy (CFE) by 2030, including matching electricity demand with CFE supply every hour of every day, in every region where the company operates.

In a post announcing the financing, Redwood Materials said:

“As electricity demand surges—driven by AI, data centers, manufacturing and electrification—energy storage is no longer optional; it is essential infrastructure.”

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