Google is the most recent investor to again Redwood Supplies because the battery recycling and cathode manufacturing startup scales a brand new power storage enterprise to energy AI knowledge facilities and different industrial websites.
Redwood Supplies, based by former Tesla CTO JB Straubel, final October raised $350 million in a Collection E spherical led by enterprise agency Eclipse. The spherical included a brand new strategic funding by Nvidia’s enterprise capital arm, NVentures.
Extra buyers, together with newcomer Google, have piled in since, pushing the Collection E to $425 million, the corporate stated. Present buyers Capricorn and Goldman Sachs have additionally returned with contemporary investments.
The corporate’s valuation was not publicly disclosed, however a supply conversant in the spherical informed TechCrunch its post-money valuation was north of $6 billion, greater than a billion increased than its earlier valuation. This newest funding pushes Redwood’s complete capital raised to $4.9 billion.
The attraction for Google, Nvidia, and others on this newest spherical seems to be power storage — and its skill to energy knowledge facilities — a more moderen enterprise enterprise inside Redwood.
Redwood Supplies was based in 2017 to create a round provide chain for batteries. It initially centered on recycling scrap from battery manufacturing and client electronics like cellular phone batteries and laptop computer computer systems. Redwood processes that scrap and extracts supplies which can be historically mined, like nickel and lithium. The newly processed supplies are then bought to clients reminiscent of Panasonic, which use them to make batteries.
Redwood has continued to broaden its enterprise past recycling. The Carson Metropolis, Nevada-based firm added cathode manufacturing a number of years in the past, and final summer time, launched an energy-storage enterprise that repurposes EV batteries that aren’t fairly able to be recycled and turns them into micro-grids that may provide energy to AI knowledge facilities and large-scale industrial websites.
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That new enterprise, referred to as Redwood Vitality, obtained its begin because the demand for knowledge facilities skyrocketed.
“As electrical energy demand surges — pushed by AI, knowledge facilities, manufacturing and electrification — power storage is now not optionally available; it’s important infrastructure,” the corporate stated in a weblog publish saying the brand new funding.
And Redwood appears to have the means to energy a minimum of a few of these knowledge facilities. The corporate stated in June it recovers greater than 70% of all used or discarded battery packs in North America, a lot of which may have a second life as power storage.
Redwood stated final yr it had greater than 1 gigawatt-hour price in its stock and anticipated to obtain one other 4 gigawatt-hours over the approaching months. The corporate expects to deploy 20 gigawatt-hours of grid-scale storage by 2028.