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Google is investing in Redwood Materials, a battery recycling and storage company, in a $75 million Series E extension, now totaling $425 million.  

Why it matters: Data center developers are increasingly adopting batteries to help manage energy load. 

Zoom in: Redwood said the final close of the Series E included participation from existing investors Capricorn and Goldman Sachs. 

Catch up quick: Redwood announced the initial part of the $350 million Series E, led by Eclipse and including Nvidia's VC arm, in October.

Redwood, founded by Tesla co-founder JB Straubel, has raised over $2.2 billion in equity.

Last summer, Redwood unveiled a new business line, called Redwood Energy, to sell refurbished EV batteries as low-cost grid storage projects for uses like powering data centers.

To demo the tech, Redwood installed close to 800 used EV batteries at its Sparks, Nevada, headquarters to provide energy for two small modular data centers that were made by Crusoe Energy and host Crusoe's cloud service.

What they're saying: "To paraphrase other folks in the industry, I don't think there's going to be a data center built that's not going to have some kind of battery," Redwood chief commercial officer Cal Lankton said onstage at the BNEF Summit on Tuesday.

Redwood can build an energy storage system for data centers that is "higher duration and is half the cost on an install-basis of traditional containerized LFP [lithium iron phosphate] solution, but with similar functionality," Lankton said.

Redwood's batteries can provide backup power, grid stability services, firming up clean energy, and market participation, Lankton said.

Reality check: Raising a VC round at this mature stage highlights the capital-intensive nature of the recycling and storage business and the risks of the recent business shift.

Zoom out: Data center developers are rapidly adopting batteries to help facilities manage load, be more flexible on the grid, and be paired with clean energy. 

The bottom line: Redwood's an energy startup darling and able to tap high-profile investors, but it's not easy to launch a new division in an emerging category.  

Google joins Redwood's boosted Series E

Data center developers are buying up grid batteries to manage load.

Aerial view of a large battery farm on a gray paved surface, adjacent to a parking area with trucks and equipment and next to a solar panel system

Redwood Material's grid battery project that supports data centers next to its HQ in Nevada. Photo: Courtesy of Redwood Materials

Google is investing in Redwood Materials, a battery recycling and storage company, in a $75 million <a class="gtmContentClick" data-vars-link-text="Series E" data-vars-click-url="https://www.axios.com/pro/climate-deals/2025/10/23/nvidia-redwood-materials-350-million" data-vars-content-id="778c779a-0f05-4364-a3ad-8c0428a7bf2a" data-vars-headline="Google joins Redwood&#x27;s boosted Series E" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/climate-deals/2025/10/23/nvidia-redwood-materials-350-million" target="_self">Series E</a> extension, now totaling $425 million. Why it matters: Data center developers are increasingly adopting batteries to help manage energy load.

Google joins Redwood's boosted Series E

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