Redwood enters AI data center power
Redwood Materials
This move turns Redwood from a battery materials supplier into a power systems company that can sell a finished product into AI infrastructure, not just ingredients into EV batteries. The practical shift is that Redwood is now using second life EV packs and new battery modules to build storage systems for data centers, starting with Crusoe, where the batteries help form a solar backed microgrid that can be deployed faster than waiting on traditional grid upgrades.
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The first visible deployment was the June 26, 2025 Crusoe Spark launch in Nevada. Crusoe and Redwood said it paired large scale solar with second life EV batteries in a 12MW, 63MWh microgrid supporting modular AI data centers. That makes Redwood an infrastructure vendor inside the data center power stack, not only a recycler upstream of battery makers.
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This fits Redwood’s core advantage. It already collects packs from automakers and electronics firms, extracts metals, and makes battery materials like cathode active material and copper foil. Energy storage adds a second monetization path, because batteries that are not ideal for vehicles can still be assembled into stationary systems where weight and range matter less.
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The broader AI market is pulling companies in this direction because power has become the gating factor for new compute. Crusoe is scaling from modular Spark units to gigawatt class campuses, and Redwood is positioning its storage business as a way to get power online quickly for data centers and the grid, using domestic battery supply rather than waiting for entirely new generation and transmission buildouts.
Going forward, Redwood is building a bridge between the EV battery supply chain and the AI power bottleneck. If it keeps turning used and newly built batteries into fast deployable storage, Redwood can capture value at three layers at once, recycling, battery materials, and on site power systems, while becoming a critical supplier to the next wave of AI data center buildouts.