In the Nevada desert, something big is happening with old electric car batteries — and it’s not recycling.
Tucked between two large buildings near Sparks, Nevada, you’ll find rows of used EV batteries, quietly powering the future. It might not look like much at first glance, but this setup is now the largest battery-powered microgrid in North America. And it’s just the beginning of a bold new chapter for Redwood Materials.
A New Business Built on Old Batteries
Redwood Materials, founded by Tesla’s former CTO JB Straubel, is known for recycling old batteries. But now, the company is doing something new: reusing those batteries to store and supply clean energy.
Straubel’s latest project is called Redwood Energy, and its first customer is a tech company called Crusoe — an AI data center operator.
Here’s the idea:
- Take old EV batteries that still have life left.
- Hook them up to solar panels.
- Use them to power energy-hungry data centers, like the ones running AI tools.
It’s smart, simple, and already making money.
What’s Actually Happening on the Ground?
In a remote desert spot:
- 805 retired EV batteries sit under white covers.
- These batteries are hooked up to solar panels nearby.
- The energy they store powers a Crusoe modular data center running thousands of GPUs.
The whole system was built in just four months — and it’s not just a trial. It’s a fully working, revenue-generating setup that Straubel says is profitable from day one.
“We wanted to go all in,” Straubel said during the launch event. “This is a real business — not a test.”
Why Not Just Recycle the Batteries?
That’s a good question. Redwood was built to recycle batteries — so why the sudden shift?
Here’s why:
- Not all EV batteries are ready to be recycled.
- Many still have years of use left in them.
- By reusing them first, Redwood makes more money and reduces waste.
Instead of waiting 5–10 years for batteries to fully die, they’re getting a second life — as clean energy storage.
This also gives Redwood a head start in a market that’s about to boom.
How Big Could This Get?
Redwood’s battery collection operation is massive:
- It already processes 20 GWh of used batteries per year, equal to 250,000 EVs.
- It holds over 1 GWh of old batteries in stock, and expects 4 GWh more soon.
- The company plans to deploy 20 GWh of storage systems by 2028, making it a major player in clean energy.
And with the AI industry growing fast — and data centers using more power — the timing couldn’t be better.
Why AI Data Centers Are the Perfect Fit
AI tools like ChatGPT, autonomous cars, and smart assistants all run on power-hungry data centers.
Crusoe, Redwood’s first energy customer, builds modular data centers for AI companies. These facilities need:
- Stable power
- Clean energy
- Low-cost solutions
Redwood’s repurposed batteries check all three boxes.
The Crusoe site now runs fully on solar and battery power — no traditional grid needed.
More Than Just a Green Move
Sure, this setup is good for the planet. But it’s also smart business.
Straubel and his team made it clear:
This isn’t about looking good. It’s about building a sustainable, scalable, and profitable energy model.
As Redwood’s CTO, Colin Campbell, put it:
“This isn’t just a green choice. It’s an economic one — that just happens to be carbon-free.”
What’s Next for Redwood?
This isn’t Redwood’s only big project.
The company is:
- Building a 600-acre factory in South Carolina
- Supplying battery materials to Panasonic, Toyota, and GM
- Expanding into Europe
- On track to make 500 GWh of battery materials per year by 2030
Redwood started by recycling old phones and laptops. Now, it’s building entire power systems — from used EVs.
Final Thoughts
Redwood Materials is proving there’s real value in things we thought were done.
By giving EV batteries a second life, they’re:
- Cutting down waste
- Supporting clean energy
- Powering the next generation of AI
All while building a profitable new business.
It’s not just about recycling anymore. It’s about rethinking energy — and putting old batteries to smart new use.
Quick Recap
- Redwood Materials has launched a new energy storage business: Redwood Energy
- It’s repurposing used EV batteries to power AI data centers
- First project: A solar-powered microgrid with Crusoe in Nevada
- Batteries are reused before recycling — saving money and cutting emissions
- Redwood plans to deploy 20 GWh of storage by 2028
- This model combines clean energy with smart business strategy