Redwood Materials Enters Energy Storage Market
Redwood Materials, famed for recycling lithium-ion batteries, has launched a new division: Redwood Energy. Now, they’re repurposing used EV batteries to power AI data centers. For example, their first deployment is a 12 MW / 63 MWh microgrid that runs Crusoe’s GPU-heavy data center in Nevada latitudemedia.com
This move marks a major shift. Previously, Redwood focused on extracting critical minerals. Now, with second-life batteries offering 50–80% capacity, they’re providing low-cost, fast-to-deploy power systems. These systems slash permitting time, curb carbon emissions, and cut costs compared to new builds redwoodmaterials.com
Redwood processes over 20 GWh of used batteries yearly, accounting for 90 % of North America’s recycled lithium-ion cells. They aim to deploy 20 GWh of grid-scale storage by 2028—enough to serve AI centers, stabilize grids, and support renewables theverge.com
In short, Redwood Energy uses its battery expertise to tackle AI’s surging energy needs. This approach blends recycling, energy storage, and real-world impact—all without waiting for brand-new batteries.
Why AI Data Centers?
⚡ Why Energy Storage Matters for AI Data Centers
AI data centers need massive, steady power. Plus, they rely on uninterrupted energy. Moreover, the current grid often can’t keep up. As a result, energy storage becomes vital. It reduces dependency on the grid. And it ensures smooth operations during demand spikes.
🌱 How Redwood Materials Steps In
Redwood Materials now operates Redwood Energy. It repurposes retired EV batteries into large-scale storage. Their systems support AI centers by offering:
- Reliable backup power during outages
- On-demand energy without pressuring the grid
- Efficient load management to balance energy use
They’ve already deployed a 12 MW / 63 MWh microgrid beside Google-style GPU hubs for Crusoe in Nevada sp-edge.com
🌍 Sustainable & Scalable Solution
Redwood processes over 20 GWh of used batteries annually (about 90% of U.S. recycled cells). These retain 50–80% of their original capacity, making them ideal for storage redwoodmaterials.com. By 2028, they plan 20 GWh of grid-level battery storage deployment. This supports AI demand and storage for renewables .
🔧 Benefits for AI Centers
- Quick deployment: Modular systems sidestep grid delays
- Lower cost: Repurposed batteries cost less than new ones streetinsider.com
- Carbon savings: Less emissions than new battery production
- Circular economy: Batteries get a “second life” before recycling
Redwood’s Strategy
The company plans to utilize recycled materials in their energy storage systems, creating a closed-loop supply chain. This approach aligns with their commitment to sustainability and resource efficiency.
What This Means for the Industry
- Increased sustainability in AI infrastructure.
- Potential reduction in energy costs for data centers.
- A boost for the battery recycling industry.