GM and Redwood Materials Unite to Repurpose EV Batteries for Sustainable Energy Storage Solutions
Extending the Life of EV Batteries Through Grid-Scale Applications
General Motors has joined forces with Redwood Materials to channel both fresh and previously utilized electric vehicle batteries into innovative recycling and repurposing processes. rather than dismantling these battery packs solely for raw materials, Redwood refurbishes them into stationary energy storage systems, considerably prolonging their functional lifespan beyond automotive use.
This pioneering method is already operational at redwood’s facility in Sparks, Nevada, where second-life GM batteries power a 12-megawatt microgrid.The electricity generated supports a nearby data center operated by Crusoe Technologies, which runs over 2,500 GPUs dedicated to intensive computational workloads.
Redwood Materials’ Expanding Influence in Renewable Energy Storage
As launching its energy storage division in early 2025, Redwood has focused on transforming retired EV battery cells into large-scale storage arrays that stabilize renewable energy supply fluctuations. Testing indicates many used cells retain upwards of 70% capacity after automotive service.
Instead of immediately breaking down battery packs for material recovery, the company preserves their structural integrity by connecting multiple units into durable systems capable of storing excess electricity-often sourced from solar or wind farms-for later use. As an example, the Crusoe data center benefits primarily from solar power stored within these repurposed battery banks.
A New Frontier Beyond Conventional Battery Recycling
JB Straubel, CEO and co-founder of Redwood Materials, emphasizes the growth potential in second-life battery applications: “This sector could surpass our core recycling business.” Currently recovering about 70% of discarded lithium-ion batteries across the U.S., Redwood aims to deploy up to 25 gigawatt-hours (GWh) of stationary energy storage capacity by 2029.
The company’s unique ability to integrate various chemistries and formats from multiple manufacturers positions it advantageously as global demand for grid-scale storage accelerates rapidly.
The Strengthened Collaboration Between GM and Redwood materials
The partnership between General Motors and Redwood has evolved beyond initial plans. A critical component involves GM supplying not only used batteries but also new ones directly off production lines. this approach helps buffer against uncertainties tied to fluctuating electric vehicle sales volumes worldwide.
For perspective: although U.S. EV sales dipped approximately 6% during Q2 2025 due partly to market adjustments ahead of tax credit expirations on September 30th, forecasts predict a strong rebound driven by renewed policy incentives promoting adoption nationwide.
The Surge in demand for Stationary Energy Storage Systems
The market for stationary energy storage continues expanding independently from automotive trends. In fact, first-quarter installations in early 2025 jumped an remarkable 57% year-over-year-setting new records fueled largely by increased integration with renewable sources such as solar farms and wind turbines across North America.
- Case Study: Texas added more than 900 megawatt-hours (MWh) of behind-the-meter residential battery capacity last year as homeowners sought reliable backup amid extreme weather events like winter storms causing widespread outages.
- International Insight: Germany is investing heavily in grid-scale lithium-ion projects utilizing repurposed EV batteries aimed at stabilizing networks challenged by variable renewable generation patterns throughout Europe.
Circular Economy principles Driving Battery Lifecycle Sustainability
this collaboration exemplifies how circular economy strategies can be effectively implemented within clean technology sectors-maximizing resource efficiency while minimizing environmental impacts associated with mining critical materials such as cobalt or nickel anew.
“Extending electric vehicle battery life through reuse before final recycling could reduce carbon emissions linked to production processes substantially over coming decades,” experts estimate.”
Paving the Way Forward: Scaling Second-Life Battery Integration Globally
If successful at scale, initiatives like those led by GM and Redwood have potential to revolutionize perceptions around electric vehicle components-not merely disposable parts but valuable assets contributing meaningfully toward decarbonized power grids worldwide.
Aiming for multi-gigawatt-hour deployments within five years,
battery reuse technologies are positioned at the forefront of sustainable infrastructure innovation globally.
