Redwood Materials Deployed Recycled EV Battery Systems
The company has begun providing repurposed electric vehicle batteries to power AI data centers and manufacturing facilities.
Updated on Oct. 14, 2026 in Electric Vehicles
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Redwood Materials has launched new energy storage systems that repurpose retired electric vehicle batteries to provide on-site power for AI data centers and factories. These systems bypass traditional, slow-moving electrical grid connection processes.
Why it matters
As AI data centers demand faster access to electricity, these behind-the-meter storage systems offer a way to generate power without waiting years for utility grid connections. This approach accelerates energy availability for industrial and tech infrastructure.
Redwood Materials has installed a 10-megawatt-hour battery system at a Rivian factory in Illinois. The company is now offering these recycled battery energy storage systems to AI data centers nationwide.
The players
Redwood Materials
A company specializing in battery recycling and the development of energy storage systems using second-life electric vehicle components.
Rivian
An electric vehicle manufacturer that has utilized Redwood Materials' storage systems at its factory locations.
JB Straubel
The CEO of Redwood Materials who has been a primary advocate for the company's energy storage initiatives.
The details
Redwood Materials packages second-life electric vehicle batteries with internal power electronics and proprietary software to create self-contained storage units. These systems operate behind-the-meter, allowing facilities to maintain power access without needing to wait for a physical connection to the regional electrical grid.
Timeline
Redwood Energy division launched in 2025.
CEO JB Straubel published a blog post regarding energy on October 14, 2026.
The Home Front
This development marks a shift in how industrial power needs are met, circumventing the lengthy wait times typically associated with the utility grid interconnection queue. It follows a growing trend of businesses seeking independent energy reliability to bypass infrastructure delays.
While this technology is currently focused on industrial-scale data centers and manufacturing plants, it highlights the potential for second-life battery usage in future energy storage markets. Homeowners should monitor how recycled battery advancements may eventually influence residential backup storage costs.
The takeaway
This technology demonstrates a practical use for aging electric vehicle batteries that would otherwise be discarded. It highlights a shift toward decentralized energy storage for large-scale operations to minimize dependence on utility infrastructure.
Further reading
Learn more about the latest developments in the sector on our Electric Vehicles page.
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Do you trust companies to prioritize power needs for AI without compromising community energy stability?
