• $350 million Series E round led by Eclipse, joined by NVentures and new strategic investors.
• Funding will scale Redwood’s integrated materials and grid storage operations in the U.S.
• Targets rising domestic demand for AI-related power, renewables, and industrial electrification.

U.S. Manufacturing Push Gains Momentum

California-based Redwood Materials has secured $350 million in Series E funding to accelerate its expansion across energy storage and critical materials production. The round, led by Eclipse and joined by NVentures—NVIDIA’s venture capital arm—reflects the growing urgency to localize battery supply chains and address surging electricity demands tied to artificial intelligence infrastructure.

The oversubscribed round strengthens Redwood’s dual strategy: supplying refined critical minerals like cobalt, nickel, lithium, and copper, while scaling grid-level battery storage systems to stabilize renewable generation and industrial power use.

The investment comes at a time when global constraints in raw material supply are colliding with a sharp rise in U.S. demand for energy and storage capacity. Domestic grid reliability and industrial competitiveness have become national priorities, especially as data centers and AI facilities push electricity networks to their limits.

Linking Materials to Megawatts

Redwood’s vertically integrated approach combines materials processing with large-scale energy storage manufacturing—a model that positions it at the intersection of clean energy policy, industrial strategy, and digital infrastructure.

Electric energy availability has become a defining constraint for the next phase of AI growth. To meet escalating compute demand, companies are turning to large, low-cost battery systems to unlock stranded generation capacity and reduce dependence on imported lithium-iron-phosphate (LFP) batteries, most of which come from China.

By integrating advanced power electronics and control software with domestically sourced materials, Redwood aims to deliver scalable storage systems capable of powering data centers, heavy industry, and regional grids. The company argues this approach not only enhances grid stability but also supports energy independence and decarbonization targets.

RELATED ARTICLE: GM and Redwood Materials Team Up to Scale U.S.-Made Battery Storage Solutions

Industrial and Policy Implications

For policymakers and investors, Redwood’s expansion reflects a broader U.S. industrial strategy underpinned by the Inflation Reduction Act and Department of Energy initiatives promoting domestic supply chains for batteries and critical minerals.

Grid-scale storage is emerging as a keystone technology for enabling higher renewable penetration and maintaining energy security. When paired with gas turbines or future nuclear generation, storage can optimize baseload efficiency while supporting intermittent wind and solar resources.

Industry analysts note that AI-driven electricity demand could reshape U.S. energy investment over the next decade, spurring cross-sector collaboration between technology firms, utilities, and materials producers. Redwood’s backers—spanning manufacturing, technology, and venture capital—highlight how capital is aligning around integrated energy systems rather than siloed clean-tech plays.

Building the Next Phase of Energy Independence

Redwood plans to use the new capital to expand energy storage deployments, increase refining and cathode material capacity, and grow its engineering and operations teams. Recruitment is underway to support rapid project delivery and product development across its U.S. manufacturing base.

The company framed the round as part of a long-term vision to establish a “resilient, dominant U.S. energy future,” blending economic competitiveness with critical-mineral independence.

For investors, the Series E signals continued appetite for ventures that bridge the gap between the energy transition and the digital economy. For energy policymakers, it underscores a growing consensus: the path to both climate goals and data infrastructure resilience now runs through large-scale, domestically produced battery storage.

Follow ESG News on LinkedIn