Tesla co-founder JB Straubel's company, Redwood Materials, is revolutionizing the way we think about energy storage and artificial intelligence. Straubel's innovative approach involves repurposing old electric vehicle batteries to power AI data centers, providing a sustainable and cost-effective solution to the surging energy demands of AI infrastructure.
Redwood Materials collects used EV batteries, which still retain up to 70% of their original capacity, and reconfigures them into modular units for energy storage. These units are then installed into microgrids that serve as backup or primary power sources for AI servers. This approach not only reduces waste but also provides a reliable and efficient source of energy.
By repurposing old EV batteries, Redwood Materials can cut energy storage costs roughly in half compared to new lithium-ion technology. The company has over a gigawatt-hour of reusable batteries in inventory and is designing projects 10 times larger than its pilot microgrid.
Redwood has partnered with Crusoe, a company building massive AI data infrastructure, to power its data centers with repurposed EV batteries. This innovative solution can help meet the massive energy demands of AI data centers while reducing reliance on fossil fuels.
Straubel's Redwood Materials is paving the way for a more sustainable and efficient AI-powered future by giving old EV batteries a new life. As the demand for AI infrastructure continues to grow, Redwood's solution is poised to play a critical role in shaping the future of energy storage and AI.
