From Observer, September 26:
Tesla veteran JB Straubel is betting his second act on closing the loop in EV batteries.
“If someone can do it, it’s JB Straubel.” That’s how Edward Sanchez, a senior analyst at automotive consultancy TechInsights, describes the strategic vision of Tesla’s co-founder and former CTO. Straubel has set out to build the world’s largest electric vehicle (EV) battery recycling company. Founded in 2017, his startup Redwood Materials aims to create a circular supply chain for lithium-ion batteries, sourcing them from automakers, dealers, parts suppliers, dismantlers and waste management firms.
The company is currently recycling 20 GWh of batteries annually—enough to power 250,000 EVs—and is working to increase that capacity substantially over the coming years. To get there, Redwood is building a $3.5 billion battery materials and recycling facility in Ridgeville, S.C., which will produce cathode and anode components for future vehicles and employ 1,500 people in the U.S. “Battery Belt.”
Straubel has raised alarms about A.I.’s soaring energy demands, warning they could strain future power supplies. In June, he launched Redwood Energy to help tackle the issue by repurposing second-life battery packs—still with half their useful life left—to power data centers and stabilize the electric grid.
To jumpstart that effort, Redwood Energy struck a deal with Crusoe, a company focused on sustainable energy for A.I., to power a new data center in Abilene, Texas. The project will run on a 63-MWh microgrid designed to operate independently from the main electricity network.
Redwood is part of the energy sector’s scramble to keep pace with the U.S.’s rapid A.I. infrastructure boom, which will consume 12 percent of the nation’s electricity within five years, up from 4.4 percent today, according to the International Energy Agency.
That growth won’t come without hurdles. Analysts warn that Redwood faces steep logistical challenges, rising capital costs and a potential shortage of used batteries as it tries to scale. The company reported $200 million in revenue in 2024, but it remains unclear whether it’s profitable.
How A.I. simplifies battery recycling
Experts say machine learning could help companies like Redwood build a closed-loop battery supply chain, reducing U.S. dependence on China-controlled components such as cobalt, which is increasingly in short supply, as well as lithium and nickel.
A growing number of institutions are exploring how A.I. could drive economies of scale in three areas critical to recycling: battery diagnostics, disassembly and refining....
....MUCH MORE
We have quite a few posts on Redwood, if interested see for more links:
