November 2, 2025: Battery recycler Redwood Materials has closed a $350 million funding round that will accelerate the firm’s creation of a new generation of US-made energy storage systems.

Redwood said on October 23 the oversubscribed Series ‘E’ round — the fifth major round of financing for startups aiming to expand further — will support the firm’s drive to develop its portfolio of scalable, low-cost energy storage systems, which it said will power datacenters, industry and the grid.

Redwood said its ESS plans will help the US reduce reliance on imported LFP batteries.

Eclipse Venture Equity led the funding round with participation from institutions including tech investor NVentures.

Redwood said electric energy availability has become a key strategic issue for AI infrastructure growth and low-cost, large-scale battery energy storage has emerged as the most immediate and scalable solution to enable AI factory deployment and unlock stranded grid and generation capacity.

Beyond powering datacenters, this storage capacity will benefit industrial electrification and help address the intermittency of domestic renewable generation, the company said.

Coupled with natural gas turbines and future nuclear generation, large scale energy storage can dramatically improve efficiency, utilization, and the reliability of those baseload assets.

Batteries International reported in July that Redwood had signed a non-binding memorandum of understanding with auto giant, GM, to accelerate deployment of energy storage systems using both new US-manufactured batteries from GM and second-life battery packs from GM electric vehicles.

The agreement followed a 2024 announcement that Redwood had partnered with Ultium Cells, a GM and LG Energy Solution joint venture, to recycle production scrap from the organization’s US facilities.