Crusoe and Redwood Unveil World’s Largest Second-Life EV Battery Deployment

Crusoe and Redwood Materials announced a groundbreaking collaboration on June 26, 2025, that redefines what’s possible at the intersection of artificial intelligence, clean energy, and infrastructure innovation. Together, they unveiled North America’s largest microgrid powered by large-scale solar and second-life EV batteries—a pioneering achievement that powers Crusoe’s modular AI data center infrastructure with renewable energy and unmatched agility.

At the heart of this deployment is Crusoe Spark™, Crusoe’s new turnkey, modular AI data center solution. Spark units are fully integrated systems that include power, cooling, and GPU-ready compute racks, all packed into a compact, portable format. Built in America, these modular units are designed for rapid deployment anywhere, particularly at the network edge where latency and scalability are key. Whether powering AI-driven logistics, robotics, or real-time inference, Spark enables organizations to scale AI workloads without the constraints of traditional data center infrastructure.

This innovation is made possible by Redwood, the industry leader in battery recycling and second-life battery repurposing. Through its new Redwood Energy division, the company has transformed used EV battery packs—many of which still retain most of their original capacity—into reliable, high-performance energy storage systems. The result is a 12 MW / 63 MWh microgrid: the largest second-life battery deployment in the world and now the largest microgrid in North America. It currently powers Crusoe’s Spark data center operations, proving that second-life batteries are not only viable but essential to fast, flexible AI infrastructure.

“Redwood Energy’s technology allows us to repurpose depreciated but functional EV battery packs, before recycling, into stationary storage. By putting these systems to work in high-demand applications like AI, we’re building energy infrastructure that’s faster, cleaner and at lower cost,” said JB Straubel, founder and CEO of Redwood Materials. “By pairing repurposed batteries with Crusoe’s modular data-center platform, we can stand up dependable power wherever new compute is needed, without waiting years for new grid capacity.”

Redwood processes over 20 GWh of batteries annually—about 90% of all lithium-ion batteries in North America. By repurposing batteries before recycling, Redwood is unlocking value at every stage of the battery lifecycle. This circular model supports grid resilience, reduces costs, and shortens deployment timelines—an ideal match for the fast-moving world of AI.

Founded in 2017, Redwood is building a sustainable, circular supply chain for electric vehicles and clean energy products. Through Redwood Energy, the company also provides affordable, high-capacity energy storage systems by repurposing used EV batteries—helping meet the surging demand for clean power.

Crusoe, an AI Leader

Crusoe brings deep experience in energy and compute infrastructure, from 1.2-gigawatt campuses in Texas to remote deployments in oil fields. Now, with Crusoe Spark, the company is solving one of AI’s most pressing bottlenecks: access to clean, scalable, and deployable power. By combining modular data centers with second-life energy storage, Crusoe and Redwood are proving that sustainability and performance can go hand in hand.

Crusoe is committed to aligning the future of computing with the future of the climate. It builds and operates AI-optimized data centers powered by clean energy, delivering low-cost, scalable infrastructure that empowers builders and innovators across the AI ecosystem.

“One of the greatest challenges of our time is rapidly scaling the energy needed to support AI. By leveraging Redwood’s revolutionary recycled battery systems with a solar array to power Crusoe Spark units, we’ve demonstrated how you can quickly deploy the energy and data center needs required to meet the demand of AI in a cost-effective and sustainably powered way,” said Chase Lochmiller, CEO and co-founder of Crusoe. “This is the first of many such deployments, and a prime example of Crusoe’s energy-first approach to AI infrastructure from the ground up.”

EVinfo.net’s Take: Why Second-Life Batteries and Recycling Make EVs the Most Eco-Friendly Way to Travel

Electric vehicles (EVs) are the future of sustainable transportation. Beyond the obvious benefits of zero tailpipe emissions and reduced reliance on fossil fuels, EVs offer something no internal combustion engine can: the ability to extend and reuse critical materials in a circular economy. Thanks to advances in battery recycling and second-life applications, EVs aren’t just cleaner to operate—they’re designed to leave a lighter footprint from end to end.

One of the biggest environmental advantages of EVs is what happens after a battery’s first life. Even when an EV battery no longer meets the performance standards for road use, it often retains 70–80% of its capacity. That’s far from the end of the road. These “second-life” batteries are increasingly being repurposed into high-value stationary energy storage systems—stabilizing the grid, supporting renewable energy projects, and powering off-grid applications. This reuse not only delays the need for new battery production but also offsets the environmental impact of mining raw materials like lithium, cobalt, and nickel.

When batteries do reach the end of their usable life, modern recycling processes step in. Companies like Redwood Materials are leading the way by recovering over 95% of valuable materials from spent batteries, feeding them back into the manufacturing loop. This closed-loop system dramatically reduces waste, cuts emissions associated with raw material extraction, and ensures that EVs have a significantly more sustainable lifecycle than traditional vehicles.

In essence, EVs represent more than just a shift in propulsion—they’re a blueprint for circular innovation. Through battery reuse and recycling, the environmental value of EVs multiplies over time, making them not only cleaner on the road but also smarter in the long run. As infrastructure and technology continue to evolve, EVs are proving themselves to be the most eco-friendly form of transportation on—and beyond—the road.

The Urgent Need to Fight Climate Change

The threat of global human-caused climate change is one of the most urgent and far-reaching challenges facing our planet. Driven primarily by the burning of fossil fuels, deforestation, and industrial emissions, human activities have significantly increased the concentration of greenhouse gases in the atmosphere, leading to rising global temperatures, shifting weather patterns, and more frequent and severe climate-related disasters.

From melting glaciers and rising sea levels to prolonged droughts and devastating wildfires, the consequences of unchecked climate change are already being felt worldwide. Without swift and sustained action to reduce emissions and transition to EVs and clean energy, the impacts will only intensify, threatening ecosystems, economies, and human health on a global scale.

EVs Save Drivers Money

Electric vehicles (EVs) are the most cost-effective form of transportation, thanks to significantly lower fuel and maintenance costs compared to gas-powered cars. Electricity is cheaper than gasoline on a per-mile basis, and as renewable energy becomes more widespread, those savings continue to grow, along with the environmental benefits. EVs also have far fewer moving parts, which means much fewer things can go wrong. Over time, these reduced operating expenses lead to substantial savings, making EVs not only cleaner but also more affordable to own and drive over the long term.

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