How Used EV Batteries Are Being Turned Into Data Centers To Power AI

As demand for energy skyrockets amid the rise of AI, one of Tesla’s co-founders is betting on a new solution: giving old EV batteries a second life. JB Straubel, who helped launch Tesla and served as its CTO until 2019, founded Redwood Materials in 2017 to recycle batteries and build a closed-loop supply chain for electric vehicles. Now, Straubel is using EV batteries that still hold usable capacity for grid-scale energy storage. Redwood’s new energy division recently partnered with AI infrastructure company Crusoe to launch its first microgrid, showcasing how repurposed batteries can help power data centers. CNBC visited Redwood’s Nevada operations to see how the company has grown and to learn more about its plans to use second-life batteries to meet the surging energy needs of the AI era.

Chapters:
0:00 Introduction
1:42 Chapter 1 - A growing recycling business
3:45 Chapter 2 - Giving batteries a second life
8:01 Chapter 3 - Powering data centers

Produced, Shot and Edited by: Andrew Evers
Senior Director of Video: Jeniece Pettitt
Additional Production: Katie Tarasov, Tim Walton, Phil LeBeau, Meghan Reeder
Additional Footage: Redwood Materials, Tesla, Getty Images

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Tesla Co-Founder Is Using Old EV Batteries For AI Data Centers

Post from CNBC on August 03, 2025

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