Redwood Materials built record grid storage project using old EV batteries

AI generated summary

Redwood Materials, founded by former Tesla CTO JB Straubel, has launched the largest energy-storage installation made from used electric vehicle (EV) batteries in Reno, Nevada. The project features 792 individual battery packs, which are protected from dust by plastic sheeting, and is designed to store 63 megawatt-hours of energy. This innovative approach allows the stored energy to power a nearby data center and supports Redwood's goal of providing continuous clean energy, even during adverse weather conditions. The company aims to expand this model, which has the potential to revolutionize energy storage by utilizing second-life batteries that are no longer suitable for vehicles but can still effectively store energy.

Redwood's success in this venture is attributed to its ability to source old EV batteries efficiently and its unique approach to installation, which avoids traditional heavy infrastructure. This strategy not only reduces costs but also accelerates deployment. While the battery recycling industry faces challenges, including fluctuating material prices and competition, Redwood believes that its energy storage business could surpass its recycling operations in revenue. The company is also exploring partnerships with AI customers and is strategically located near major tech firms, positioning it well for future growth in the clean energy sector.