"At first glance, a company known for reclaiming metals such as cobalt, nickel, and lithium might seem far removed from the realm of large language models and GPU clusters. But as AI data centers multiply across the US, power has become a defining bottleneck. Redwood's growing grid energy storage business aims to solve that. Back in June, the startup unveiled Redwood Energy to help power the AI revolution by repurposing used batteries into energy storage systems. Its massive new battery installations store electricity at low cost, releasing it during high-demand periods to stabilize the grid and feed energy-hungry data centers."
""This energy business is a really exciting opportunity for them to go attack,""
""They have a unique opportunity to build out battery energy storage solutions and leverage all kinds of power generation, whether it be solar, wind, industrial gas turbines and ultimately nuclear, to power data centers that are off grid.""
Redwood Materials raised $350 million in a financing round that lifts its valuation past $6 billion, with Eclipse leading and Nvidia’s NVentures participating. The company is expanding from battery recycling into large-scale grid energy storage through Redwood Energy, repurposing used batteries into storage systems that hold low-cost electricity and release it during peak demand to stabilize the grid and support power-intensive AI data centers. The strategy aims to reduce power bottlenecks for AI infrastructure, enhance energy security, and deploy US-made storage solutions that can integrate with solar, wind, gas turbines, and nuclear power generation.
Read at Business Insider
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