Redwood Materials is transforming old electric vehicle (EV) batteries into affordable, large-scale energy storage solutions, significantly cutting costs compared to new projects. Founded by Tesla’s former chief technologist, the company recently launched a new division called Redwood Energy, dedicated to repurposing these batteries to help address critical energy grid needs.
Every year, Redwood handles over 20 GWh of batteries—equivalent to about 250,000 EVs—making it responsible for roughly 90% of all lithium-ion batteries and materials recycled in North America. Interestingly, many of these batteries still retain up to 50% of their original energy capacity, even if they’re no longer suitable for vehicle use. Instead of recycling these still-functional batteries, Redwood repurposes them into stationary energy storage systems, creating a sustainable way to extend their life and contribute to clean energy initiatives.
As more EVs reach the end of their lifespan—more than 100,000 are expected to retire this year alone—Redwood sees a growing opportunity to give these batteries a second life. After receiving the used battery packs, Redwood’s engineers conduct detailed diagnostics to assess whether they can be reused. If deemed suitable, the batteries are integrated into flexible, modular storage systems that can operate independently or connect seamlessly to the grid.
Currently, Redwood has over a gigawatt-hour of recycled batteries in its pipeline, with plans to grow this capacity by an additional 5 GWh in the coming year. One of their flagship projects is a microgrid powered entirely by upcycled EV batteries. Located at Redwood’s Nevada campus, this 12 MW, 63 MWh system powers a 2,000-GPU data center supporting AI infrastructure. This microgrid is touted as the largest second-life battery deployment worldwide, capable of powering roughly 9,000 homes, supporting 20 Amtrak trips between New York and Washington, D.C., or charging an EV for a 240,000-mile journey—the distance equivalent to a trip to the moon.
Founded in 2017 by JT Straubel, Redwood Materials specializes in recycling scrap from Tesla’s battery production alongside batteries from major automakers like Ford, Toyota, and Nissan, as well as batteries from companies like Amazon, Lyft, Rad Power Bikes, Lime, and stationary storage facilities. The company also produces crucial battery components such as anodes and cathodes at its facility in South Carolina, reinforcing its role as a leader in sustainable battery recycling and reuse.
