Redwood Materials is transforming used electric vehicle batteries into cost-effective energy storage systems, significantly cheaper than traditional new storage projects, the company announced on Thursday.
Founded by former Tesla chief technologist JB Straubel, Redwood has launched a new division named Redwood Energy to oversee these initiatives. The goal is to redirect “depreciated but functional” EV batteries away from recycling to be repurposed into low-cost, large-scale energy storage systems, which have the potential to address critical energy grid deficits.
Annually, Redwood acquires over 20 GWh of batteries, which corresponds to approximately 250,000 electric vehicles. This figure accounts for around 90 percent of all lithium-ion batteries and materials recycled within North America. Many of these batteries still retain substantial energy capacity, often up to 50 percent, making them viable for new applications even if they can no longer sustain vehicle operation.
Instead of letting these functional batteries go to waste, Redwood is leveraging them for stationary storage solutions. The company anticipates an increase in such opportunities as a growing number of EV batteries near the end of their lifecycle. It is projected that more than 100,000 electric vehicles will be retired this year.
Upon collecting the battery packs, Redwood’s engineers conduct diagnostic evaluations to identify whether the batteries can be recovered or must be recycled. Reusable packs are integrated into “flexible, modular storage systems” capable of functioning independently or connecting to the energy grid. Currently, Redwood claims it has “over a gigawatt-hour” of reusable batteries prepared, a figure expected to expand by an additional 5 GWh over the next year.
The company has successfully implemented its inaugural microgrid powered by repurposed EV batteries. This facility, boasting 12 MW of power and 63 MWh of capacity, is situated at Redwood’s site in Nevada and supplies energy to a 2,000-GPU modular data center for AI infrastructure provider Crusoe. Redwood asserts this installation is the “largest second-life battery deployment in the world,” offering sufficient energy to power “9,000 homes, facilitate 20 Amtrak journeys between New York and Washington, D.C., or charge an EV for a 240,000-mile trip—the equivalent distance to the moon.”
Founded in 2017, Redwood Materials operates under the direction of JB Straubel. The company not only processes scrap from Tesla’s battery production alongside Panasonic but also recycles batteries from various manufacturers, including Ford, Toyota, Nissan, Specialized, Amazon, Lyft, Rad Power Bikes, Lime, and stationary energy storage facilities. Furthermore, Redwood manufactures critical battery components like anodes and cathodes at its plant in South Carolina.
