Old EV batteries find new spark

Redwood Materials leads a surge in second-life EV batteries, cutting costs and easing strain on critical minerals.

4 Jul 2025

Redwood Materials is leading a growing effort to repurpose used electric vehicle batteries as a cost-effective source of stationary energy storage, reducing the need for newly mined minerals and easing supply chain pressures.

The Nevada-based company is scaling up its refurbishment programme, converting retired EV batteries into second-life systems for homes, businesses and grid applications. These repurposed units offer reliable performance at a lower cost while extending the useful life of battery materials such as lithium, cobalt and nickel.

“Our approach allows us to extract more value from every cell before recycling,” the company said in a recent statement. Redwood’s efforts reflect broader interest in circular economy models and a shift away from the linear use of critical materials.

Public policy is adding momentum. The US Department of Energy’s Bipartisan Infrastructure Law includes dedicated funding through FOA 0002680 for pilot projects using second-life batteries, particularly in grid and microgrid settings. California’s Self-Generation Incentive Program also offers rebates for storage systems incorporating refurbished batteries, bolstering demand in one of the country’s largest clean energy markets.

Challenges remain around standardising reused battery systems. Differences in pack design, age and performance make testing and certification complex. Safety and warranty structures are still being defined. According to DOE guidance, industry growth will depend on improved validation methods, skilled labour and scalable business models.

Still, as EV adoption accelerates, battery reuse is becoming a key part of the energy transition. Redwood and other early movers are working to build a more sustainable and cost-efficient battery supply chain.