Redwood Materials launches energy storage business targeting AI data centers
10 months ago
- #EV-batteries
- #sustainability
- #energy-storage
- Redwood Materials launches an energy storage business called Redwood Energy, leveraging retired EV batteries.
- The largest microgrid in North America powers a 2,000 GPU modular data center for AI company Crusoe.
- Redwood recovers over 70% of used or discarded battery packs in North America, processing 20 GWh annually.
- The company plans to deploy 20 gigawatt-hours of grid-scale storage by 2028.
- Redwood Energy's microgrid setup with Crusoe is already profitable and will expand to other customers.
- Redwood Materials, founded by former Tesla CTO JB Straubel, aims to create a circular battery supply chain.
- The company generates $200 million in revenue, largely from selling battery materials like cathodes.
- Redwood has partnerships with Toyota, Panasonic, and GM, and is expanding its facilities in Nevada and South Carolina.
- Repurposing EV batteries for energy storage is both an economic and carbon-free solution.
- The recycling market currently relies on manufacturing scrap and consumer electronics, but EV battery recycling is expected to grow significantly.