Hey followers! Today, I’ve got a tech story that’s as cool as a freshly booted computer. Redwood Materials is jumping into energy storage, and it’s all powered by old EV batteries!

Picture this: tucked between two towering buildings in Nevada’s desert hills, a neat lineup of 805 retired EV batteries lies under plain sight, wrapped in white tarps. This array isn’t just random; it’s actually the biggest microgrid in North America, powering a 2000-GPU AI data center for Crusoe. It’s the handiwork of JB Straubel, Redwood’s CEO and co-founder.

During an event in Sparks, Nevada, Redwood announced its new venture, Redwood Energy. This business repurposes the countless EV batteries it has collected into a clean energy source, specifically targeting AI data centers. Their first partner? Crusoe, an AI infrastructure firm.

The retired batteries, which aren’t ready for recycling, store energy harnessed from a nearby solar farm. This setup produces 12 MW of power with a capacity of 63 MWh, feeding directly into Crusoe’s modular data center built in Texas. It’s a practical example of turning waste into super-efficient power.

Redwood’s operation is massive – they recover over 70% of used or discarded batteries in North America, stockpiling more than 1 GWh worth in their inventory, with an additional 4 GWh expected soon. By 2028, they aim to deploy 20 GWh, positioning themselves as the top re-user of end-of-life EV batteries.

Straubel was confident about this initiative, emphasizing that the entire setup is profit-making, not just a demo. Everything — lighting, DJ, even the food — is powered by their microgrid. They foresee expanding this model with other customers, potentially outpacing their core recycling business.

Founded in 2017 by Tesla’s ex-CTO, Redwood started by recycling scrap from battery and electronics manufacturing. Now, they’re into cathode production and have grown beyond Nevada, securing deals with giants like Toyota, Panasonic, and GM, and building new factories in South Carolina and Europe.

Redwood Energy demonstrates that used EV batteries can be a clean, economical, and scalable energy source. This approach not only helps meet surging energy storage demands but also creates a sustainable end-of-life market for EV batteries, which aligns with Redwood’s mission of building a circular supply chain.

Straubel admits they started early, collecting consumer and scrap batteries ahead of EV market growth. While current recycling efforts process over 20 GWh annually, it’s still a fraction of the millions of EVs on the road, which hit 350 GWh today and are expected to grow rapidly. Redwood’s future plans include large-scale cathode and anode manufacturing that aims for hundreds of gigawatt-hours by 2030.

To sum it up, Redwood’s new venture proves that repurposed EV batteries can be a crucial part of the renewable energy future, powering data centers and beyond, all while giving old batteries a new lease on life. Exciting times for tech, environment, and energy!