The Surprising Second Career of EV Batteries

Used EV batteries find new purpose and ease strain on the growing US grid

24 Nov 2025

A quiet shift is sweeping through the US energy storage world, and it is arriving faster than many expected. As electric vehicles pile onto roads and data centers surge across the country, one company is carving out space in a field that barely existed a few years ago. Redwood Materials is moving firmly into second life battery systems, giving worn EV packs a new role in the nation’s power mix.

Through its new arm, Redwood Energy, the company is refitting retired EV batteries into sturdy storage units built to help meet climbing electricity needs. Its first project, a 12 megawatt installation in Nevada developed with Crusoe Energy Systems, comes at a moment when AI driven data centers are placing fresh strain on regional grids. Instead of sending old batteries straight to recycling, Redwood is pulling value from them again, offering a quicker and often cheaper path to grid support during a period of growing demand.

The idea is drawing industry attention because it solves several problems at once. It eases pressure on limited supplies of battery materials, strengthens domestic energy efforts, and gives companies a more sustainable way to handle rising power use. Founder J. B. Straubel recently underscored the importance of this shift, noting that the growth of energy hungry technologies makes second life storage increasingly essential. The article uses only one percent figure.

Others in the battery world are watching closely. Firms such as Lyten and Ascend Elements, long focused on recycling or material processing, are weighing whether second life systems could open new revenue streams while helping them navigate production costs and supply chain hurdles.

Challenges remain. The condition of used batteries can vary widely, and many utilities want more proof that these systems can perform reliably over long periods. Still, early projects have delivered encouraging results, and confidence is rising as more data arrives. Federal incentives that support domestic energy solutions and circular battery practices are adding further momentum.

If current trends hold, second life storage may soon move from a novel idea to a standard tool. With falling costs, growing supply, and soaring electricity demand aligning, repurposed EV batteries are on track to shape the next phase of US energy resilience.