Can AI Turn Old EV Batteries Into Energy Gold?

AI-driven startups turn used EV batteries into power assets for a cleaner grid

15 Oct 2025

Artificial intelligence is giving electric vehicle batteries a second act. Across the country, companies are using machine learning to diagnose, reuse, and recycle aging batteries, cutting waste while strengthening the energy grid. The result is a shift toward a cleaner, more circular energy system that keeps valuable materials in play.

Redwood Materials, Smartville, and B2U Storage Solutions are among the leaders driving this change. Smartville’s AI platform, called Periscope, can evaluate a used EV battery’s health in minutes, deciding whether it should be repurposed for energy storage or sent for recycling. What once took lab tests and human guesswork now scales across warehouses and commercial sites, pointing to a more efficient future for battery management.

Redwood Materials, founded by a former Tesla executive, has expanded into second-life projects while exploring ways to link AI diagnostics with its recycling operations. The goal: extract more usable materials and extend the life of viable batteries before they are broken down. B2U, meanwhile, runs a 24-megawatt-hour facility in Texas built from repurposed EV batteries, showing that second-life systems can rival newly manufactured ones in performance.

Experts say AI is the catalyst making all this possible. “AI is allowing us to turn used batteries into assets, not liabilities,” said a senior analyst at NAATBatt, an advanced battery trade group. The technology, they added, is helping manufacturers close the loop on production while strengthening the resilience of the power grid.

Policy tailwinds are reinforcing this progress. The Inflation Reduction Act has pushed for domestic, sustainable supply chains, creating incentives for circular innovation. Still, challenges persist. Different battery models mean inconsistent data, and groups like SAE and Li-Bridge are working to standardize testing and safety protocols.

Even with those hurdles, momentum is unmistakable. As AI-driven diagnostics mature and recycling networks scale up, the United States is edging closer to a future where EV batteries power both cars and communities, cleaner, longer, and smarter than before.