An AI data center boom is fueling Redwood’s energy storage business
Summary
Redwood Materials announces that its new energy storage division is the fastest-growing segment of the company, highlighting its commitment to innovation and sustainability in the energy sector. This development underscores the increasing demand for efficient energy solutions.
Key Insights
What is Redwood Materials' approach to energy storage using used batteries?
Redwood Materials repurposes used battery packs directly into energy storage systems without disassembling them, preserving their original form to reduce reengineering and permitting delays, while using proprietary software to manage varying chemistries and health levels across packs.
Why is Redwood's energy storage business growing rapidly due to AI data centers?
The AI data center boom is driving a surge in electricity demand, with data centers projected to account for 12% of U.S. electricity by 2028, requiring fast, scalable, and cost-effective storage solutions that Redwood provides using abundant used batteries at lower costs than new lithium-ion projects.