Redwood Materials Expands into Energy Storage, Targeting AI Data Centers

Redwood Materials has officially launched Redwood Energy, an energy storage business that repurposes used electric vehicle (EV) batteries. The company, founded by former Tesla CTO JB Straubel, aims to leverage its extensive collection of EV batteries to provide power, initially targeting AI data centers. The batteries, stored in a microgrid setup in Nevada, are charged by a nearby solar array, providing a sustainable and cost-effective energy solution. Redwood’s microgrid is currently powering a data center for Crusoe, an AI infrastructure company. The company has already made significant strides in recycling, recovering over 70% of discarded EV batteries in North America. Redwood plans to expand further, with the goal of deploying 20 gigawatt-hours of grid-scale storage by 2028. The move highlights the growing market for repurposed batteries as a reliable energy source and positions Redwood Materials as a key player in the industry. Straubel believes this new business could grow faster than the company’s core recycling operations. Redwood’s long-term plans include scaling up storage solutions for various industries while continuing to focus on battery recycling and material production.