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Aug 3, 2025 - How Used EV Batteries Are Being Turned Into Data Centers To Power AI As demand for energy skyrockets amid the rise of AI, one of Tesla`s co-founders is betting on a new solution: giving old EV batteries a second life. JB Straubel, who helped launch Tesla and served as its CTO until 2019, founded Redwood Materials in 2017 to recycle batteries and build a closed-loop supply chain for electric vehicles. Now, Straubel is using EV batteries that still hold usable capacity for grid-scale energy storage. Redwood`s new energy division recently partnered with AI infrastructure company Crusoe to launch its first microgrid, showcasing how repurposed batteries can help power data centers. CNBC visited Redwood`s Nevada operations to see how the company has grown and to learn more about its plans to use second-life batteries to meet the surging energy needs of the AI era. Chapters: 0:00 Introduction 1:42 Chapter 1 - A growing recycling business 3:45 Chapter 2 - Giving batteries a second life 8:01 Chapter 3 - Powering data centers |
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