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Redwood Materials has completed its Series E funding round, raising $425 million, with investments from Google and other backers, valuing the company at over $6 billion. The funds will be allocated to expanding its energy storage platform and its electric vehicle (EV) battery recycling operations.

The Nevada-based company, founded by ex-Tesla CTO JB Straubel, is transitioning from solely battery recycling to grid-scale energy storage through its new unit, Redwood Energy. This pivot aims to meet the increasing electricity demand driven by AI and data centers.

The funding round was increased from an initial $350 million due to strong investor interest, including participation from Nvidia's venture arm. Redwood plans to leverage repurposed EV batteries for energy storage, supporting the infrastructure needs of data centers while continuing to invest in recycling and critical minerals processing in the U.S.