As Nvidia’s value has soared—becoming the first public company to hit $4 trillion in market capitalization earlier this year—it’s been pouring money into AI startups. Its venture arm, NVentures, is also backing less expected bets. The latest: Redwood Materials, the EV battery recycling company, which just raised $350 million in a new funding round.

Redwood launched in 2017 with the aim to build a U.S. supply chain for critical metals by pulling materials like cobalt and lithium from used EV batteries. But the company spun up another major business this year—using secondhand EV batteries as a low-cost form of energy storage at data centers.

“I think people misname them as a recycling company,” says Joe Fath, a partner at Eclipse, which led Redwood’s new Series E round. “Recycling is reall

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