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Redwood Materials launches energy storage business and its first target is AIdata centers
Redwood Materials launched its energy storage business, Redwood Energy, utilizing retired EV batteries to power AI data centers, starting with a partnership with Crusoe in Nevada. The company aims to transform the energy storage market, offering competitive solutions with repurposed batteries, while also addressing the growing wave of used EV batteries expected over the coming years.
Key points
- Redwood Materials launches Redwood Energy, focusing on energy storage using retired EV batteries.
- The initial partnership is with Crusoe, powering their AI data center using a microgrid that generates 12 MW.
- Redwood claims to process over 20 GWh of batteries annually, recovering more than 70% of discarded battery packs in North America.
- Expected growth includes deploying 20 GWh of grid-scale storage by 2028, potentially outpacing their recycling business.
Why it matters
- Redwood's expansion aligns with trends in IT and energy, particularly around sustainable energy storage as demand grows for renewable resources and AI infrastructure.
- The increasing utilization of used EV batteries reflects a shift towards recycling and repurposing, in response to environmental concerns and resource availability.
- Historically, inadequate capacity for energy storage has hindered renewable energy's effectiveness, making Redwood's innovations significant.
Redwood Materials is poised to reshape the energy storage landscape with its innovative use of retired EV batteries, significantly contributing to sustainability and the energy needs of the growing AI sector.