Crusoe and Redwood Materials Launch World’s Largest Second-Life Battery Deployment to Power AI Infrastructure

Crusoe and Redwood Materials Unveil the World’s Largest Second-Life Battery Deployment, Powering the Future of AI with Repurposed EV Batteries

**SPARKS, NV – June 26, 2025** – Crusoe, recognized as the industry’s first vertically integrated AI infrastructure provider, and Redwood, a leading battery recycling and materials company, have unveiled North America’s largest microgrid powered by large-scale solar energy and second-life electric vehicle (EV) batteries. This innovative system is specifically designed to support AI factories with unmatched flexibility and speed.

This strategic collaboration allows for the rapid deployment of mobile and scalable AI data centers that can operate efficiently off-grid. By addressing one of AI’s most significant challenges—power supply—Crusoe and Redwood are offering a compelling solution.

Redwood is uniquely positioned to implement this solution at scale, processing 20 GWh of batteries annually—the equivalent of 250,000 EVs—accounting for about 90% of all lithium-ion batteries in North America. Many of these battery packs can be repurposed into second-life energy storage systems, extending their useful life before recycling and maximizing value at every stage.

“Redwood Energy’s technology enables us to repurpose depreciated but functional EV battery packs into stationary storage before recycling,” stated JB Straubel, founder and CEO of Redwood Materials. “By integrating these systems into high-demand applications like AI, we are building energy infrastructure that is faster, cleaner, and more cost-effective. This partnership allows us to provide reliable power wherever new computing is needed, without the prolonged wait for new grid capacity.”

Redwood has successfully established a microgrid with a capacity of 12 MW and 63 MWh, which is now the largest second-life battery deployment globally and serves as the power source for Crusoe’s modular data center dedicated to AI infrastructure. Redwood Energy’s new business line offers a cost-effective solution by repurposing used battery packs—retaining most of their capacity—into modular energy storage systems that can quickly fill today’s infrastructure gaps.

In conjunction with this deployment, Crusoe is introducing Crusoe Spark™, a turnkey, modular AI data center solution powered by Redwood’s technology. Crusoe Spark encompasses all necessary infrastructure, including power, cooling, and GPU-ready racks, within a single portable unit optimized for accelerated AI computing. Designed for rapid and scalable deployments, these compact, self-contained units are perfect for various applications, including providing low-latency AI inference services at the edge without the site constraints of larger-scale infrastructure. Manufactured in the USA, Crusoe Spark enables industries to quickly and easily expand their data center capacity and AI computing workloads.

“One of our era’s greatest challenges is the rapid scaling of energy required to support AI,” said Chase Lochmiller, CEO and co-founder of Crusoe. “By utilizing Redwood’s groundbreaking recycled battery systems alongside solar arrays to power Crusoe Spark units, we have illustrated how to swiftly address the energy and data center requirements needed to meet AI demand in a cost-effective and sustainable manner. This is just the beginning of many such deployments and exemplifies Crusoe’s energy-first approach to AI infrastructure from the ground up.”

Crusoe’s leadership in AI infrastructure is founded on its extensive experience in developing some of the world’s largest data center campuses, including a 1.2-gigawatt site in Abilene, Texas, as well as scalable modular data centers for advanced computing in remote oil fields. The company is now leveraging its expertise in data center development and energy infrastructure to offer new solutions through Crusoe Spark, addressing the critical challenge of deploying powerful, low-latency AI computing at the network’s edge. By simplifying the complexities of power and infrastructure within a compact modular system, Crusoe continues to find innovative ways to allow customers to flexibly scale and deploy AI capabilities, free from the limitations of traditional data center infrastructure.

—

### About Redwood Materials
Founded in 2017, Redwood Materials aims to build a sustainable supply chain for electric vehicles and clean energy products, driving down battery costs. The company develops and deploys new technologies to enhance the recycling and sustainability of materials in the global battery supply chain. Through Redwood Energy, they also repurpose battery packs into low-cost, high-capacity energy storage systems to meet rising power demands.

### About Crusoe
Crusoe is dedicated to aligning the future of computing with climate sustainability. The company provides a reliable, scalable, cost-effective, and environmentally friendly solution for AI infrastructure by harnessing large-scale clean energy, constructing AI-optimized data centers, and empowering builders to achieve their AI potential. Crusoe is at the forefront of the AI revolution.