Google Joins $425 Million Capital Raise for Battery Storage Provider Redwood Materials

Redwood Materials has completed the final close of its Series E financing, lifting total capital raised in the round to $425 million and underscoring accelerating investor interest in grid-scale energy storage and domestic battery materials infrastructure.

The final close expands on the $350 million milestone announced in October 2025. According to the company, strong investor demand drove the increase, with proceeds earmarked to scale its energy storage platform while further strengthening its integrated recycling and critical minerals operations.

 

Scaling Storage and Critical Materials Together

 

Founded in 2017 by Tesla co-founder and former CTO JB Straubel, Nevada-based Redwood Materials operates at the intersection of grid energy storage and battery materials recovery. The company designs, integrates, and deploys large-scale storage systems using both new and repurposed batteries, while also recycling end-of-life batteries to extract and refine lithium, nickel, cobalt, and copper for reuse in the U.S. supply chain.

This dual model positions Redwood as both an infrastructure provider and a materials recycler, addressing two structural challenges in the energy transition: the need for flexible storage to support electrification and renewables, and the need to localize critical mineral supply chains.

 

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Google Enters as a Strategic Investor

 

The Series E final close included participation from existing backers Capricorn and Goldman Sachs, while adding Google as a new investor. Google’s involvement aligns with its broader push to scale energy storage as part of its commitment to operate entirely on carbon-free energy by 2030, including matching electricity consumption with carbon-free supply on a 24/7 basis across all regions where it operates.

Google has been increasingly active in storage investments, including a recent strategic partnership with Energy Dome, reflecting a view that storage is becoming foundational infrastructure rather than a niche clean energy add-on.

 

Energy Storage as Essential Infrastructure

 

In announcing the expanded financing, Redwood emphasized the changing role of storage as electricity demand rises sharply. Growth in AI workloads, data centers, advanced manufacturing, and electrification is placing unprecedented strain on power systems, making large-scale storage critical for reliability, flexibility, and cost control.

By combining recycled battery materials with grid-scale storage deployment, Redwood aims to lower system costs while reducing dependence on imported critical minerals, an objective increasingly aligned with U.S. industrial policy and energy security priorities.

 

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Strategic Significance for the Energy Transition

 

For investors and policymakers, the Series E close highlights a convergence of themes shaping energy markets: surging power demand, the strategic value of storage, and the reshoring of battery materials supply chains. Redwood’s ability to link recycling, refining, and deployment into a single platform offers a differentiated model at a time when both grids and supply chains are under pressure.

As storage shifts from optional capacity to core infrastructure, capital flows like this suggest that integrated players capable of addressing both materials and system deployment may play an outsized role in the next phase of the energy transition.