As demand for power skyrockets amid the rise of AI, certainly one of Tesla‘s co-founders is betting on a brand new answer: giving previous electrical automobile batteries a second-life.
JB Straubel, who helped launch Tesla and served as its tech chief till 2019, founded Redwood Materials in 2017 to recycle batteries and construct a closed-loop provide chain for EVs. However as Redwood began receiving extra EV batteries, the startup observed that the majority nonetheless had usable capability. Somewhat than recycle these batteries, Redwood is now repurposing them for microgrid initiatives that might present low-cost power storage for brand spanking new and present knowledge facilities.
“We’re simply discovering a strategy to principally wring somewhat bit extra worth out of these batteries,” Straubel instructed CNBC.
For its first microgrid, Redwood partnered with Crusoe, finest identified for the huge AI knowledge middle it’s constructing in Abilene, Texas, as a part of Stargate, a $500 billion AI infrastructure undertaking backed by OpenAI, Oracle, SoftBank and others. Redwood says its system is the biggest of its type in North America. It generates 12 megawatts of energy via a photo voltaic array, and has 63 megawatt-hours of capability utilizing the repurposed EV batteries.
“Within the power trade, the holy grail has been 24/7 renewable energy, however without end the price of batteries was too excessive, till as we speak,” says Cully Cavness, Crusoe co-founder, COO and president.
The worldwide knowledge middle market is experiencing a surge in development as a result of AI increase. In line with Goldman Sachs, AI is estimated to drive a 165% increase in knowledge middle energy demand by 2030. Redwood and Crusoe stated they see knowledge facilities as a key beneficiary of the expertise, serving to hyperscalers deploy with velocity and energy redundancy, at an inexpensive value.
“That is value efficient, quickly deployable, scalable 24/7 renewable energy and AI knowledge middle computing as one built-in bundle,” Cavness stated.
Redwood says it has over a gigawatt-hour of reusable batteries in its stock, the equal of 12,500 EVs, and it is designing 100 plus megawatt initiatives, as much as 10 instances the dimensions of the pilot microgrid with Crusoe.
“The scalability of this actually does not have a restrict,” Straubel instructed CNBC. “We will use the identical kind of structure and scale this up by an element of 100 or extra. We’re already engaged on engineering initiatives which can be in that kind of magnitude.”
Along with its recycling enterprise, Redwood will now be competing in a rising power storage market with established gamers like Tesla, which has constructed a successful power enterprise with its Megapack grid-scale storage. However consultants say there may be loads of room for brand spanking new entrants to fulfill demand.
“The longer term demand for power storage particularly is very large, so it isn’t shocking that gamers who historically have not been on this house wish to enter,” stated Pete Tillotson, senior analysis analyst with Benchmark Mineral Intelligence. “I’d think about this second-life piece goes for use for extra centered, barely smaller initiatives. Doubtlessly with purchasers the place value is somewhat bit extra of a limiter.”
Watch the video to see how Redwood Supplies has grown its recycling operations and study extra about its plans to make use of second-life batteries to fulfill the surging power wants of the AI period.