GM is sending new and old EV batteries to Redwood Materials for repurposing as stationary energy storage, the two companies announced today.
Second-life GM batteries have already been processed by Redwood and plugged into a 12 MW microgrid at Redwood’s Sparks, Nevada HQ. That setup powers a nearby 2,000-GPU data center run by Crusoe, with energy fed by solar panels.
Redwood’s new energy storage division launched publicly in June. It keeps battery packs intact instead of breaking them down to materials. Many cells still have plenty of life left, so Redwood connects packs into large storage systems for grid use, storing extra solar and wind power. 
Redwood co-founder and CEO JB Straubel said this part of the business could outgrow their core recycling operations.
“I think this has the potential to grow faster than the core recycling business,” JB Straubel said.
Redwood currently recovers about 70% of used or discarded batteries in the U.S. and aims to deploy 20 GWh of energy storage by 2028.
The deal expands an existing agreement. Notably, GM will supply Redwood with new batteries, not just used ones. This hedges against fluctuations in EV sales, which dipped 6.3% in Q2 2025, per Cox Automotive. Tax credit changes could trigger a surge before September 30.
Meanwhile, energy storage is growing steadily. Q1 2025 saw a 57% year-over-year jump in new storage installations.
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