Founded in 2017 by former Tesla CTO JB Straubel, Redwood Materials began by recycling production scrap and consumer electronics batteries, selling the recovered materials to customers such as Panasonic. The company has since moved up the supply chain to manufacture battery cathode materials and, in June 2025, launched Redwood Energy to turn used EV batteries into stationary storage. Its energy-storage unit is already the startup’s fastest-growing segment, supported by a 55,000 sq ft San Francisco R&D lab that now hosts roughly 100 of Redwood’s 1,200 total employees. The first commercial installation, built for Crusoe, delivers 12 MW of power and 63 MWh of capacity to a modular data center. Redwood says it is now working on projects in the hundreds of megawatt hours and has multiple-gigawatt-hour deployments in the pipeline, largely driven by the surging demand from AI data centers facing multi-year grid interconnection delays. These initiatives leverage the thousands of EV battery packs the company already collects through its recycling network, creating a circular supply chain from end-of-life vehicle batteries to data-center power. Revenue figures are not disclosed, but management positions the energy-storage expansion as a key growth driver alongside its established recycling and cathode businesses.

Total raised

$4.5B

Funding rounds

7

Latest round

Series E

Latest activity

Feb 2026