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Tesla co-founder JB Straubel is using old EV batteries to power AI data centers

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By illuminem briefings

· 3 min read


illuminem summarises for you the essential news of the day. Read the full piece on CNBC or enjoy below:

🗞️ Driving the news: JB Straubel, Tesla co-founder and CEO of Redwood Materials, is repurposing used EV batteries to power AI data centers, addressing two pressing sustainability challenges: battery waste and the soaring energy demands of artificial intelligence
Partnering with Crusoe Energy, Redwood's first microgrid project in Abilene, Texas, delivers 12 MW of power and 63 MWh of storage using second-life EV batteries, forming part of the $500 billion Stargate AI infrastructure initiative backed by OpenAI, Oracle, and SoftBank

🔭 The context: AI is driving a massive expansion in data center infrastructure, with Goldman Sachs projecting a 165% increase in data center power demand by 2030
At the same time, EV adoption is creating a growing stream of used batteries, many of which still retain usable storage capacity
Redwood Materials, initially focused on battery recycling, is now evolving into an energy storage player — aiming to close the loop and extend battery life before recycling

🌍 Why it matters for the planet: Second-life battery applications reduce resource extraction, lower lifecycle emissions, and make battery production more circular
Repurposing EV batteries for stationary energy storage supports round-the-clock renewable power, a critical step for decarbonizing data centers — some of the world’s fastest-growing energy consumers
The model offers a scalable blueprint for reusing materials that would otherwise become e-waste

⏭️ What's next: Redwood holds over 1 GWh of repurposed battery capacity — equivalent to 12,500 EVs — and is designing energy projects 10 times larger than its current pilot
The company is entering the utility-scale energy storage market alongside incumbents like Tesla’s Megapack, with a focus on modular, cost-effective systems for fast-growing AI infrastructure
Market analysts expect second-life battery projects to become increasingly relevant for decentralized and microgrid applications where budget constraints meet high energy needs

💬 One quote: “We’re just finding a way to basically wring a little bit more value out of those batteries.” – JB Straubel, CEO of Redwood Materials

📈 One stat: AI is projected to drive a 165% increase in global data center power demand by 2030, according to Goldman Sachs

See on illuminem's Data Hub™ the sustainability performance of Tesla and its peers CATL, and Schneider Electric

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illuminem's editorial team, providing you with concise summaries of the most important sustainability news of the day. Follow us on Linkedin, Twitter​ & Instagram

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