- Redwood Energy launched with a 12 MW, 63 MWh microgrid powering Crusoe’s AI data centre in Nevada.
- The company repurposes retired EV batteries, recovering 70% of North America’s used battery packs.
- Redwood plans to deploy 20 GWh of grid-scale storage by 2028, expanding clean energy solutions for AI and beyond.
Redwood Materials, the battery recycling pioneer founded by former Tesla CTO JB Straubel, has launched a new energy storage business, Redwood Energy, targeting AI data centres as its first customers.
The company unveiled North America’s largest microgrid at its Sparks, Nevada, facility, powered by 805 retired electric vehicle (EV) batteries wrapped in white tarps.
This 12 MW, 63 MWh capacity system supplies power to a modular data centre operated by AI infrastructure firm Crusoe.
The microgrid stores energy generated from an adjacent solar array, delivering clean, reliable power to Crusoe’s 2,000-GPU modular data centre.
This deployment is not a demonstration but a revenue-generating, profitable operation built in just four months, with plans to roll out more such systems this year.
Redwood Materials recovers over 70% of used or discarded battery packs in North America, processing more than 20 GWh annually, equivalent to 250,000 EVs. The company has stockpiled over 1 GWh of batteries not yet ready for recycling and expects an additional 4 GWh soon.
By 2028, Redwood aims to deploy 20 GWh of grid-scale storage, positioning itself as the largest repurposer of used EV battery packs.
Redwood Energy’s approach offers a cost-effective, carbon-free alternative to traditional energy storage, capable of operating off-grid or connected to the grid.
CTO Colin Campbell emphasised the economic benefits, stating, “It’s a good economic choice that also happens to be carbon free.”
This new business complements Redwood’s existing recycling and cathode production operations, supporting a circular supply chain for battery materials while addressing the growing energy demands of AI infrastructure.
Edited by Annette George
