Google, NVIDIA Invest in Redwood Materials to Support Energy Storage

---

Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

---

Summary

Google joined NVIDIA in investing in Redwood Materials as the battery recycling and materials company moves into energy-storage production.

---

Google and NVIDIA's Redwood Materials Investment

Google joined NVIDIA in investing in Redwood Materials as the battery recycling and materials company moves into energy-storage production.

Redwood announced Wednesday that it completed its Series E funding round, valuing the company at $425 million after participation from Google and other investors. The round initially raised $350 million, including funding from NVIDIA's venture capital arm.

The increase was a result of "strong demand," Redwood said in a press release. "This capital will accelerate our energy storage platform while continuing to strengthen our integrated recycling and critical minerals business. As electricity demand surges--driven by AI, data centers, manufacturing and electrification--energy storage is no longer optional; it is essential infrastructure."

Last year, the company unveiled its Redwood Energy division--which deploys electric vehicle (EV) battery packs and new modules into energy-storage systems.

Neither Google nor NVIDIA commented on the investment, but it is well known that data center developers are looking for ways to pay for their own power in the face of concerns regarding rising ratepayer costs amid the rapidly growing data center buildout.

For more information, see January 15, 2026, article - Microsoft Plans to Pay More for Data Centers' Power and October 24, 2025, article - Energy Summit: How Much Should Ratepayers Support Grid Buildout?.

The Department of Energy projects data centers could consume up to 12% of all U.S. electricity by 2028, buoyed by demand for artificial intelligence (AI).

Redwood Materials' Data Center Microgrid Installation

In addition to receiving off-site electricity via transmission and distribution to support large loads, data centers are also exploring behind-the-meter power. This refers to electricity generated on-site, such as that from microgrids--independent, small-scale energy systems.

Last year, Redwood deployed North America's largest microgrid, with 12-megawatts/63 megawatt-hours of output utilizing low-cost, second-life batteries, at an undisclosed data center owned by AI infrastructure company Crusoe.

Redwood plans to boost its energy-storage deployment by utilizing its access to 20 gigawatt-hours (GWh) of annual battery capacity, which equates to about 90% of all lithium-ion batteries and battery materials recycled in North America, according to Redwood.

The company has said it has more than 1 GWh of reusable batteries in its deployment pipeline, with that amount set to expand by 5 GWh, and is already designing 100+-megawatt projects.

Redwood Materials' Critical Minerals Operations

Even though the company is building out its energy storage business, the company also is further developing its battery recycling and materials operations.

Last year, Redwood brought the first phase of its battery-materials campus in South Carolina online, with the facility now recovering critical minerals--adding more than 20,000 metric tons of annual processing capacity. The company plans to construct a cathode materials plant that will supply the site.

The South Carolina operation is similar to its campus in Nevada, which, produced 60,000 metric tons of materials in 2025. Underway at the site is a battery-recycling operation and anode copper foil expansion; once complete, the facility would produce 100 GWh of battery-grade copper foil (35,000 metric tons per year) and 100,000 metric tons per year of cathode active materials each year.

The two projects total $3 billion in capital investment.

Cathode active materials are made from recycled lithium, nickel and cobalt and are responsible for storing and releasing lithium ions during the charging and discharging of a battery, while copper foil allows electric current to flow while also dissipating heat generated by the battery.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Plant and Project databases can learn more--including key components, investment values and necessary equipment--from the related plant profiles and detailed project reports.

In July, Redwood signed a non-binding memorandum of understanding with General Motors, for which the automaker would supply EV batteries and second-life battery packs to be recycled for energy-storage systems. Neither side has yet to provide an update, including specific timelines or volumes.

Key Takeaways

• Tech giants Google and NVIDIA are investors in Redwood Materials, which is beginning to manufacture energy-storage systems.
• The battery recycling and materials company continues to build out its related footprint.
• Redwood provides about 90% of all lithium-ion batteries and battery materials recycled in North America, according to the company.

---

About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resource's Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).