Redwood Materials launches Redwood Energy

Redwood Materials, Carson City, Nevada, has launched Redwood Energy, a platform to repurpose battery packs into energy storage systems.

Through its nationwide logistics network, sorting and recycling, the company manages electric vehicle (EV) battery packs and says many end-of-life batteries retain more than 50 percent of their usable capacity. Redwood Energy aims to maximize the value of end-of-life batteries between recovery and recycling.

According to Redwood, this solution comes at an important time for the United States as electricity demand accelerates with the popularity of artificial intelligence (AI) and the rapid increase of electrification across multiple sectors. By 2028, data centers could consume 12 percent of U.S. electricity, and traditional grids will struggle to keep up, the company says.

By repurposing used battery packs into modular energy storage systems, Redwood says it can bridge today’s infrastructure gaps with a system reportedly less expensive than new lithium-ion storage projects.

Redwood says it recovers more than 70 percent of battery packs from across North America and evaluates every battery through its in-house platform to determine suitability for reuse versus recycling. Qualified packs are integrated into modular storage systems using Redwood’s proprietary control architecture. The company says its systems can operate independently or be connected to the electrical grid, and when a battery reaches the end of its useful life, it is recycled by Redwood’s existing recycling system for critical mineral recovery.

The company has already built a 12-megawatt and 63-megawatt-hour capacity microgrid, which powers a modular data center for AI infrastructure company Crusoe.

“This is just the beginning for Redwood Energy,” Redwood Materials says in a blog post. “We have over a gigawatt-hour of reusable batteries in our deployment pipeline, and that’s expanding by an additional 5-gigawatt hours in the coming year. We’re already designing 100-plus megawatt projects—10 times the size of this deployment. Redwood Energy will play a critical role in meeting the power demands of the AI era while accelerating American innovation across industries.”

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