Redwood Materials Launches Largest Used EV Battery Storage Microgrid in Nevada

Redwood Materials, founded by Tesla co-founder JB Straubel, has launched Redwood Energy, a new venture focused on repurposing used electric vehicle (EV) batteries into large-scale energy storage systems. The company has deployed the largest microgrid in North America at its Sparks, Nevada campus, which uses hundreds of second-life EV batteries combined with solar power to generate 12 MW of power and 63 MWh of capacity, enough to power about 9,000 homes. This microgrid currently powers a 2,000-GPU modular data center for AI infrastructure company Crusoe, offering a lower-cost and carbon-free energy solution that addresses the growing electricity demand driven by AI and data centers. Redwood recycles over 70% of North America’s discarded lithium-ion batteries and aims to deploy 20 gigawatt-hours of grid-scale storage by 2028, positioning itself as a leader in battery reuse and recycling. The initiative highlights the viability of second-life batteries for stationary energy storage, bridging the gap between battery retirement and recycling while supporting renewable energy integration. Straubel emphasized the company’s commitment to scaling up, with over 1 GWh of reusable batteries in inventory and plans for projects 10 to 100 times larger than the current deployment.