JB Straubel’s Redwood Materials Launches Energy Business Focused on Second-Life EV Batteries
Key Insights
Redwood Energy has deployed the world's largest second-life battery system, repurposing used EV batteries to power a 12 MW/63 MWh microgrid for an AI data center in Nevada.
The modular system, designed for scalability, leverages Redwood Materials' logistics network to recover and test EV batteries, with many retaining over 50% usable capacity.
Redwood projects over 1 GWh of reusable batteries in its pipeline, expanding by 5 GWh annually, targeting 100+ MW projects to meet growing energy storage demands.
The initiative aligns with Nevada's 'lithium loop' strategy, supported by federal tech hub designation and a $2 billion DOE loan, to reshore critical battery supply chains.
Redwood Energy, a subsidiary of Redwood Materials, has unveiled the world's largest second-life battery deployment, repurposing used electric vehicle (EV) batteries to power a 12-megawatt (MW), 63-megawatt-hour (MWh) microgrid for an AI data center operated by Crusoe in Nevada. The project marks a significant milestone in sustainable energy storage, demonstrating the viability of second-life batteries for large-scale applications.
The system, which is also North America's largest microgrid, leverages Redwood Materials' extensive logistics network to recover and test end-of-life EV batteries. Approximately 70% of battery packs in North America are processed by Redwood, with many retaining over 50% of their original capacity. These batteries are integrated into modular storage systems, adaptable to varying energy demands and compatible with any manufacturer or chemistry. The microgrid can operate independently or connect to the grid, providing stability for intermittent renewable sources like solar and wind.
Redwood Energy's pipeline includes over 1 GWh of reusable batteries, with plans to expand by an additional 5 GWh annually. The company is already designing projects exceeding 100 MW—ten times the size of the current deployment—to address the accelerating energy demands of AI and other high-power applications. "This is not a niche opportunity; it's a scalable energy resource," Redwood stated, noting that over 5 million EVs on U.S. roads represent 350 GWh of potential storage capacity.
Founded by former Tesla executive JB Straubel, Redwood Materials is central to Nevada's 'lithium loop,' a closed-loop system for producing, manufacturing, and recycling lithium-ion batteries. The company recycles 20 GWh of batteries annually—equivalent to 250,000 EVs—and has secured partnerships with Ford, GM, and BMW. Supported by a $2 billion DOE loan and federal tech hub designation, Redwood aims to reshore critical battery supply chains, reducing reliance on foreign sources and minimizing environmental impact.
Straubel emphasized the environmental and logistical benefits of localizing supply chains, citing the extensive global journey of raw materials like lithium and cobalt. "It's already gone on a journey around the world," he said, highlighting the need for domestic solutions.