Core Insights - Google has invested in Redwood Materials, a startup focused on battery recycling and cathode production, as it expands into energy storage for AI data centers and industrial sites [1][3] - Redwood Materials raised a total of $425 million in its Series E funding round, with a post-money valuation exceeding $6 billion, marking an increase of over $1 billion from its previous valuation [2] - The company has raised a total of $4.9 billion in capital to date [2] Company Overview - Redwood Materials was founded in 2017 by former Tesla CTO JB Straubel to create a circular supply chain for batteries, initially focusing on recycling scrap from battery production and consumer electronics [4] - The company processes scrap materials to extract valuable components like nickel and lithium, which are then sold to manufacturers such as Panasonic for battery production [4] Business Expansion - Redwood has diversified its operations beyond recycling, adding cathode production and launching an energy-storage business that repurposes EV batteries into micro-grids for AI data centers and large industrial sites [5] - The new energy-storage venture, Redwood Energy, was initiated in response to the increasing demand for data centers [5] Market Demand - The company emphasizes that energy storage has become essential infrastructure due to surging electricity demand driven by AI, data centers, and electrification [6] - Redwood claims to recover over 70% of used or discarded battery packs in North America, many of which can be repurposed for energy storage [6] Future Projections - Redwood reported having over 1 gigawatt-hour of energy storage capacity in inventory and expects to receive an additional 4 gigawatt-hours soon [7] - The company aims to deploy 20 gigawatt-hours of grid-scale storage by 2028 [7]