Arbitrage between reuse and recycling
Moment Energy
This is really a supply chain advantage disguised as a product strategy. A pure repurposer only makes money if a retired EV pack is still healthy enough for stationary storage, but a player like Redwood can inspect the same pack and send the best ones into energy storage while sending weaker ones into metals recovery. That means it can bid more aggressively for incoming batteries, keep more volume under contract, and still earn value even when a pack is not suitable for reuse.
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Moment Energy depends on sourcing healthy retired packs from OEMs and fleets, then screening and rebuilding them into Luna systems. Its economics improve when it buys batteries cheaply and consistently, so any competitor that can pay for a wider range of battery conditions has a real edge at the intake gate.
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Redwood has that flexibility because it already runs a large recycling and materials business, receives over 20 GWh of batteries annually, and evaluates each pack for reuse versus recycling inside one workflow. It also sells storage built from both repurposed and new batteries, which broadens the set of packs it can monetize.
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The downstream effect is pricing pressure. Redwood has already deployed a 12 MW, 63 MWh second life microgrid for Crusoe and says it targets the lowest cost storage in the market. Base Power points to another integrated model, where the company keeps battery ownership and captures ongoing electricity value, not just one time hardware margin.
The category is moving toward operators that control more of the battery life cycle, from collection to grading to reuse, recycling, and energy market monetization. For specialists like Moment Energy, the winning path is to lock in OEM supply, deepen certification and diagnostics, and become the highest trust buyer for packs that are too valuable to scrap immediately.