Old EV Batteries Find New Power in AI Microgrid

Crusoe and Redwood launch largest US microgrid using second-life batteries to support solar-powered AI computing

30 Jun 2025

Crusoe Energy and Redwood Materials have launched North America’s largest microgrid powered by used electric vehicle batteries, combining solar generation with repurposed energy storage to support AI data centers.

The Nevada-based project integrates 12 megawatts of solar capacity with 63 megawatt-hours of storage using retired EV battery packs. These batteries, which retain between 50 and 80 per cent of their original capacity, now provide backup and load-balancing services for Crusoe’s off-grid AI computing systems.

Redwood Materials, founded by former Tesla executive JB Straubel, is focused on building circular battery supply chains. The company is applying its technology to extend battery life before recycling. “Redwood Energy’s technology allows us to repurpose depreciated but functional EV battery packs, before recycling, into stationary storage,” Straubel said. “By putting these systems to work in high-demand applications like AI, we’re building energy infrastructure that’s faster, cleaner and at lower cost.”

Crusoe, which deploys modular computing units near energy sources, said the partnership provides a renewable power solution that meets the high energy requirements of AI training workloads. For Redwood, it offers a scalable use case for aging batteries that reduces waste and emissions.

The system aligns with US efforts to localise clean technology and reduce reliance on imported materials. By repurposing batteries already in circulation, the project lowers the environmental footprint of storage deployment and enhances grid resilience.

However, industry standards for testing and certifying second-life batteries remain under development, and regulatory guidance varies across jurisdictions. As EV adoption expands, the supply of retired batteries is expected to increase significantly over the coming decade.

Backers of the project say its model could offer a cost-effective alternative to conventional battery recycling or new battery manufacturing. The integration of AI and renewable energy demands novel infrastructure, and second-life batteries are emerging as a practical intermediary step.