Turning both new and used electric vehicle batteries into energy storage solutions for grid-scale and data center applications
From EVs to Energy Storage: The New Battery Lifecycle
General Motors (GM) and Redwood Materials have expanded their partnership to give new life to EV batteries—not just by recycling, but by repurposing entire battery packs for stationary energy storage.
- Instead of breaking batteries down for raw materials, Redwood integrates intact cells from GM into microgrids and energy storage systems.
- This approach supports a sustainable, circular battery economy, making the most of every cell’s usable lifespan.
Real-World Impact: Powering Data Centers With Second-Life Batteries
Some of these second-life GM batteries now power a 12-megawatt microgrid at Redwood’s headquarters in Sparks, Nevada.
- The energy from this installation is directed to a nearby 2,000-GPU data center operated by Crusoe.
- The microgrid uses solar panels to charge the batteries, storing green energy for when it’s most needed.
Why Repurposing Beats Recycling (For Now)
Testing revealed many EV batteries still have plenty of life left, even after vehicle use.
- Redwood found it more efficient—and more impactful—to connect these packs for energy storage, storing solar and wind power for later use.
- CEO JB Straubel believes this could outpace battery recycling as a business line.
A Growing Trend—And Redwood’s Competitive Edge
- Redwood’s new energy storage division aims to deploy 20 gigawatt-hours of storage by 2028.
- The company’s flexibility—handling packs from different brands and chemistries—may set it apart from other players in the “second life” market.
- Already, Redwood recovers about 70% of all used or discarded batteries in the U.S.
GM’s Strategic Move: Old and New Batteries Alike
This collaboration goes beyond simply repurposing old batteries.
- GM is also supplying new battery packs to Redwood, providing a backup plan if EV sales fluctuate.
- While EV sales dipped 6.3% last quarter, the energy storage sector is on the rise—installations jumped 57% year-over-year in Q1.
The Bigger Picture: Grid-Scale Storage Is Booming
- Repurposed EV batteries could be a crucial piece of the clean energy transition, bridging the gap between renewables and constant energy demand (like data centers).
- With incentives for energy storage strong and grid needs growing, expect more companies to follow suit.
