In the heart of the Nevada desert, nestled between towering buildings, lies a remarkable sight: 805 retired EV batteries neatly arranged and covered in white tarps. What may seem like an ordinary setup is, in fact, the largest microgrid in North America, providing power to a modular data center for AI infrastructure company Crusoe. This innovative project is the brainchild of JB Straubel, the CEO of Redwood Materials, who aims to repurpose used EV batteries for energy storage.
Redwood Materials recently unveiled Redwood Energy, a new venture that utilizes collected EV batteries to supply power to various companies. Teaming up with Crusoe, Redwood Energy has set up a system that generates 12 MW of power and boasts a capacity of 63 MWh. The energy stored in these retired batteries is harnessed from a nearby solar array, showcasing a sustainable and efficient energy solution for data centers.
The scale of Redwood’s battery collection operation is impressive, with the company recovering over 70% of used battery packs in North America. Processing more than 20 GWh of batteries annually, equivalent to 250,000 EVs, Redwood has stockpiled over 1 gigawatt-hour worth of batteries with plans to receive an additional 4 gigawatt-hours in the near future. By 2028, the company aims to deploy 20 gigawatt-hours of grid-scale storage, solidifying its position as a leader in repurposing used EV battery packs.
The launch event for Redwood Energy exuded confidence and commitment, with every aspect powered by the microgrid. Straubel emphasized that this initiative is not just a demonstration but a revenue-generating operation that is already profitable. With plans to deploy similar setups with more customers in the coming year, Redwood Energy is poised for rapid growth.
Redwood Materials, founded by Straubel in 2017, focuses on creating a circular supply chain by recycling battery scrap and consumer electronics. The company has expanded beyond recycling to cathode production and has secured partnerships with major players like Toyota, Panasonic, and GM. Redwood Energy represents a significant step forward in the company’s evolution, offering a sustainable and economically viable solution for energy storage.
The innovative approach of repurposing EV batteries for grid-scale storage addresses a longstanding challenge in the energy sector. Redwood’s initiative not only demonstrates the economic feasibility of such projects but also highlights the potential for large-scale energy storage using recycled materials. Experts believe that Redwood’s strategic move into repurposing batteries is not just a business opportunity but a necessity to stay ahead in a rapidly evolving market.
Despite starting early in the battery recycling market, Redwood Materials is well-positioned to capitalize on the growing demand for sustainable energy solutions. With plans to expand its recycling facilities and increase production capacity, the company is set to play a significant role in shaping the future of energy storage. By repurposing used EV batteries, Redwood is not only contributing to a greener future but also establishing itself as a key player in the evolving energy landscape.