Tesla co-founder uses recycled EV batteries to power AI data centers

JB Straubel, Tesla’s co-founder and former chief technology officer, is pioneering a new approach to powering AI data centers using recycled electric vehicle batteries through his company Redwood Materials. This innovative solution addresses the skyrocketing energy demands of artificial intelligence infrastructure while extending the useful life of EV batteries that still retain significant storage capacity.

What you should know: Straubel founded Redwood Materials in 2017 with the original mission of creating a closed-loop battery recycling system for electric vehicles.

• The company has now expanded its focus to repurpose used EV batteries for grid-scale energy storage applications.
• These “second-life” batteries still hold usable capacity even after their automotive applications end, making them viable for stationary energy storage.

Why this matters: The convergence of AI’s explosive growth and the need for sustainable energy solutions creates a compelling opportunity for battery recycling innovation.

• AI data centers require massive amounts of reliable power, driving unprecedented demand for energy storage solutions.
• Repurposing EV batteries provides a more sustainable alternative to manufacturing new storage systems while addressing the growing challenge of battery waste.

The big picture: This approach represents a practical intersection of two major technological trends—the electrification of transportation and the AI revolution.

• As more EVs reach end-of-life status in the coming years, the supply of potentially reusable batteries will grow substantially.
• Grid-scale energy storage is becoming increasingly critical as renewable energy sources require backup power systems to ensure reliability.

Competitive landscape: Straubel’s background as Tesla’s former technology chief positions Redwood Materials uniquely in the battery recycling space.

• The company benefits from deep expertise in battery technology and manufacturing processes gained during Tesla’s rapid scaling phase.
• This venture demonstrates how automotive industry veterans are finding new applications for their expertise in the broader clean energy ecosystem.