Redwood Materials wants to help companies wait for electricity for years by building an on-site energy system with recycled EV batteries, according to CEO JB Straubel.
Battery recycling startups have expanded beyond collecting and processing old electric vehicle batteries. It’s increasingly a way for AI data centers to get power faster, without waiting for a new connection to the American-backed power grid.
“Connecting to the grid can take years,” Straubel wrote in a blog post on Friday.
The solution is what the industry calls “behind-the-meter” energy systems, which operate without having to connect to the grid. Redwood will integrate second-life EV batteries with solar panels and other power sources on site, allowing customers to generate and store electricity at their own facilities.
Battery storage rack system from Redwood Material Red wood material Kab
The company has implemented the idea with Rivian. Redwood recycles used batteries from EV manufacturers and installs energy storage systems at the Rivian plant, building on a 10 megawatt-hour installation at the company’s Illinois plant.
Redwood also packages batteries with its own power electronics and software, turning what started as a recycling business into a broader energy offering.
The company launched its Redwood Energy division last year on the premise that EV batteries still have years of useful life after they are retired from cars. A large battery system has been built for the Crusoe data center.
Straubel’s latest post makes it clear where Redwood sees the biggest opportunities.
“The underlying problem is speed for power,” he wrote, referring to the AI-fueled race to secure electricity.
That marks another step in Redwood’s evolution. Investors initially backed the company to recycle batteries. Now, it’s increasingly selling something different: a faster way to bring power to energy-hungry AI data centers.
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