Archive — US — techcrunch
Redwood attracts Google for its $425M Series E as AI power needs rise
Redwood Materials, backed by Google in a $425M Series E funding round, focuses on battery recycling and energy storage to power AI data centers. Founded by ex-Tesla CTO JB Straubel, Redwood aims to enhance energy infrastructure by repurposing EV batteries and has garnered interest due to escalating energy demands propelled by AI and industrial needs.
Key points
- Redwood Materials has raised a total of $425M in Series E funding, increasing its valuation to north of $6 billion.
- Investors include Google, Nvidia's NVentures, Capricorn, and Goldman Sachs.
- The funding is aimed at expanding Redwood’s energy storage venture, especially for AI data centers.
- Redwood was established in 2017, originally focusing on recycling batteries from production and consumer electronics.
- It now expands into cathode production and energy storage, repurposing EV batteries for micro-grids.
- Redwood recovers over 70% of used battery packs in North America and plans to deploy significant grid-scale storage by 2028.
Why it matters
- The increasing demand for energy storage is a significant trend in the tech industry, especially for AI applications.
- Historically, energy storage solutions have become critical as renewable energy sources grow.
- By 2025, the global focus on sustainable battery solutions aligns with Redwood's business model, reflecting on the shift towards circular economies in tech.
- The rise of AI technologies necessitates enhanced energy management strategies, highlighting the importance of companies like Redwood.
Redwood Materials' recent funding round underscores the urgent need for advanced energy storage solutions, driven by AI's energy demands, marking a pivotal shift in how tech industries approach infrastructure and sustainability.