Redwood Materials Offered Recycled Battery Storage for AI

The company has introduced new energy systems using retired electric vehicle batteries to power data centers.

Updated on Oct. 14, 2026 in Electric Vehicles

Redwood Materials Offered Recycled Battery Storage for AI

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Redwood Materials has launched a new initiative to provide AI data centers with energy storage systems derived from recycled electric vehicle batteries. These systems bypass traditional, lengthy grid connection processes to provide faster access to power.

Why it matters

AI data centers require immense amounts of electricity, but traditional grid connections can take years to secure. By utilizing repurposed batteries, companies can establish reliable, independent power sources that operate behind the meter.

Redwood Materials has successfully implemented a 10-megawatt-hour battery storage system at a Rivian manufacturing factory in Illinois. This setup utilizes proprietary internal power electronics and software to manage the second-life batteries.

The players

Redwood Materials

This company focuses on the circular supply chain for electric vehicle batteries by recycling old units and building new storage solutions.

Rivian

This manufacturer is a prominent producer of electric vehicles and has partnered with energy suppliers to power its factory operations.

JB Straubel

He serves as the CEO of Redwood Materials and is a key figure in the development of battery technology and electric vehicle infrastructure.

The details

The firm, through its Redwood Energy division, pairs retired electric vehicle batteries with on-site solar panels to create independent power grids. These systems are designed to function entirely without needing a connection to the primary U.S. power grid.

The Redwood Energy division was officially launched in 2025.
CEO JB Straubel published a blog post detailing the company energy strategy on October 14, 2026.

Roadmap

The adoption of second-life batteries for industrial storage marks a significant shift toward circular manufacturing within the automotive sector. This strategy allows companies to maximize the lifespan of battery components while securing reliable energy independent of the aging public power grid.

For the average consumer, this innovation may help accelerate the deployment of AI services by reducing energy-related delays in data center construction. It also demonstrates a viable path for lowering costs associated with powering large-scale tech facilities.

The takeaway

Repurposing retired batteries is an effective way to address the immense energy demands of emerging technologies. Companies looking to scale infrastructure should prioritize these behind-the-meter solutions to avoid years of waiting for utility grid access.