General Motors (GM) is supplying both used and new electric vehicle batteries to Redwood Materials, which is converting them into stationary energy storage systems, the companies said on Sunday.
Under the expanded partnership, GM’s battery packs are being integrated into Redwood’s energy storage initiatives rather than being dismantled solely for recycling. Some of these batteries are already in use, powering a new 12-megawatt microgrid at Redwood’s headquarters in Sparks, Nevada. The microgrid delivers electricity to a nearby data center operated by Crusoe, utilizing solar-generated power.
Redwood Materials, founded by Tesla co-founder JB Straubel, launched its energy storage division in June to focus on repurposing end-of-life EV batteries. The company found that many incoming battery packs retained substantial usable capacity. Instead of extracting raw materials, Redwood connects the intact batteries to form large-scale storage systems, storing excess electricity generated by renewable sources such as solar and wind.
The collaboration with GM strengthens Redwood’s position in the growing stationary storage market, which reached record installations in the first quarter of 2025, with a 57% year-over-year increase. GM’s provision of not only used batteries but also new units offers the automaker flexibility amid uneven EV sales, which declined 6.3% in the second quarter, according to Cox Automotive.
Redwood currently processes approximately 70% of used or discarded batteries in the U.S. and has set a target to deploy 20 gigawatt-hours of energy storage capacity by 2028. The company’s ability to integrate batteries from multiple manufacturers and chemistries could offer a competitive advantage as the market continues to expand.