Redwood Materials, a battery recycling and energy storage startup based in Nevada, founded by JB Straubel, a Tesla Inc. (NASDAQ:TSLA) co-founder, raised over $350 million in its latest funding round. The company had previously raised $1 billion in Series D funding and is also backed by Nvidia Corp. (NASDAQ:NVDA).
Redwood Adds $350 Million To Grow Energy Storage Solutions
Sharing the update on the social media platform X on Thursday, the company hailed the successful funding round. "We've closed a $350M Series E led by @EclipseVC with participation from @NVIDIA's NVentures," Redwood Materials said, adding that the funding was going to fuel the company's "two core business lines: Critical Materials + Energy Storage."
The company, in a statement released on the same day, said that "low-cost, large-scale battery energy storage" has become an "immediate and scalable solution to enable AI factory deployment."
Gene Munster Weighs In
Quoting the post, Deepwater Asset Management's investor Gene Munster hailed the funding round.
"About nine months ago," Munster wrote, JB Straubel, founder of Redwood Materials, who was also the co-founder of Tesla Inc. (NASDAQ:TSLA), thought of a "better use for the EV batteries" Redwood took in.
Straubel "got to work on a new product segment," Munster wrote, which was a "low-cost, fast-deployment grid energy storage," the investor said in the post. "Eventually, I expect energy will become their biggest business," Munster added.
Trump's Anti-Clean Energy Stance Crushing Nvidia, Tesla's Energy Storage Growth
The news comes as President Donald Trump had called clean energy and solar power "the scam of the century" as he announced cuts to clean energy tax credits, as well as halting solar wind farm projects. The renewable energy sector is recording growth, outpacing the likes of Nvidia.
Meanwhile, Tesla's energy storage business recorded a 44% YoY surge in revenue. The business accounted for over $3.4 billion in revenue for the EV giant, accounting for over 12% of its total sales during the third quarter of 2025.
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