Redwood Materials Transforms Old EV Batteries into Energy Storage Solutions

Redwood Materials is repurposing old electric vehicle (EV) batteries into energy storage systems that cost “substantially less” than brand new storage projects, the company announced on Thursday.

Founded by Tesla’s former chief technologist, Redwood has established a new division called Redwood Energy to oversee these initiatives. The primary goal is to divert “depreciated but functional” EV batteries from the recycling stream and transform them into “low-cost, large-scale” energy storage systems that can help address critical gaps in the energy grid.

Redwood reports that it receives over 20 GWh of batteries annually, equivalent to 250,000 EVs, which accounts for approximately 90 percent of all lithium-ion batteries and battery materials recycled in North America. Many of the batteries received for recycling still retain a significant amount of usable energy capacity—up to 50 percent. These batteries, while no longer suitable for powering an electric vehicle, still possess enough life to serve alternative purposes.

Instead of recycling these still-functional batteries, Redwood is converting them into stationary storage systems. The company anticipates that this will become an increasingly significant opportunity as more EV batteries reach the end of their lifespan. Redwood estimates that over 100,000 EVs will be retired from service this year alone.

Upon receiving the battery packs, Redwood’s engineers conduct diagnostic checks to determine whether each pack is a suitable candidate for recovery or recycling. If deemed reusable, the pack is integrated into “flexible, modular storage systems” that can operate independently or connect to the grid. Redwood claims to have “over a gigawatt-hour” of reusable batteries in its pipeline, a figure it expects to increase by 5 GWh in the coming year.

Redwood has already launched its first microgrid powered by upcycled EV batteries. This grid, which boasts 12 MW of power and 63 MWh of capacity, is situated at the company’s campus in Nevada and is utilized to power a 2,000-GPU modular data center for AI infrastructure company Crusoe. Redwood describes this deployment as the “largest second-life battery deployment in the world,” capable of supplying enough energy to power “9,000 homes, support 20 Amtrak trips between New York and Washington, D.C., or charge an EV for a 240,000-mile journey—the distance to the moon.”

Founded in 2017 by JT Straubel, Redwood Materials not only recycles batteries from its own operations with Panasonic but also processes batteries from Ford, Toyota, Nissan, Specialized, Amazon, Lyft, Rad Power Bikes, Lime, stationary storage facilities, and other sources. Additionally, the company manufactures anodes and cathodes, which are critical components of batteries, at a facility located in South Carolina.

As the demand for sustainable energy solutions continues to grow, Redwood Materials is positioning itself as a key player in the transition to a more sustainable energy future by maximizing the utility of existing battery resources.