Redwood Materials Secures $425M in Series E Funding for Lithium-Ion Battery Recycling and Component Remanufacturing

Redwood Materials does not feel like a startup announcement. It feels like a supply chain deciding it is tired of improvising. Founded in 2017 and headquartered in Sparks and Carson City, Nevada, Redwood was built by Jeffrey Straubel after fifteen years as Tesla’s Chief Technology Officer, watching batteries scale faster than the systems meant to recover them. The bet was simple and uncomfortable. If lithium ion batteries were going to define the next century, someone had to own the afterlife.

Redwood Materials closed its Series E at $425 million. The round opened in October and pulled in another $75 million on the final close because demand stayed hot. Eclipse Ventures led. Google joined at the finish. Capricorn Investment Group, Goldman Sachs Alternatives, and NVentures stayed in the deal. The post money valuation cleared $6 billion, a full billion north of the Series D, pushing total equity raised to roughly $2.167 billion, with a $2 billion Department of Energy loan already waiting in the wings.

Redwood is not chasing scraps. It already processes more lithium ion batteries than anyone in North America, holding roughly 90 percent market share and moving over 60,000 metric tons a year through its Nevada facility, with South Carolina adding another 20,000 metric tons annually as of November 2025. Recovery rates exceed 95 percent for nickel, cobalt, lithium, and copper. That is not sustainability theater. That is math.

The name matters. Redwood Materials is not about nostalgia. It is about building something tall, slow, and hard to knock over. The company refines recycled metals back into battery grade cathode active materials and anode copper foil, feeding new cells instead of digging fresh holes. Now it is stacking a second trunk. Redwood Energy, launched in June 2025, takes second life and new battery packs and turns them into grid scale storage for data centers and industrial power. One gigawatt hour is already in inventory. Four more are coming. The target is 20 gigawatt hours deployed by 2028.

The leadership bench reflects that ambition. Jeffrey Straubel sets the thesis. Chris Lister runs operations with scars from Tesla’s Gigafactory years. Colin Campbell brings power electronics discipline from nearly two decades at Tesla. Cal Lankton handles commercial muscle with experience spanning Tesla, ABB, and nuclear submarines. This is not a vibes driven team. It is a throughput driven one.

Google’s arrival in the Series E reads less like a logo grab and more like a signal. Artificial intelligence eats power. Data centers need stability. Redwood already deployed a 12 megawatt, 63 megawatt hour microgrid with Crusoe Energy. When compute accelerates, the grid either adapts or stalls.

Redwood Materials sits at an intersection that is only getting louder. Critical minerals nationalism, artificial intelligence infrastructure demand, and the uncomfortable reality that batteries do not disappear when the car does. This raise does not close a chapter. It thickens the plot and dares the market to keep up.