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Redwood Materials has raised $425 million in a Series E funding round, attracting Google and other investors to support its energy storage solutions aimed at powering AI data centers. Founded by former Tesla CTO JB Straubel, Redwood previously secured $350 million in October 2022, led by Eclipse Ventures, with participation from Nvidia's NVentures.

The recent influx of capital includes returning investors Capricorn and Goldman Sachs, bringing Redwood's total funding to $4.9 billion and increasing its post-money valuation to over $6 billion. Established in 2017, Redwood initially focused on battery recycling and cathode production but has expanded into energy storage through its Redwood Energy initiative, which repurposes EV batteries into micro-grids. The company aims to deploy 20 gigawatt-hours of grid-scale storage by 2028 and currently recovers over 70% of used battery packs in North America.