GM Partners with Redwood Materials to Transform EV Batteries into Sustainable Energy Storage Solutions

General Motors (GM) is collaborating with Redwood Materials to recycle both new and old electric vehicle (EV) batteries, repurposing them for innovative stationary energy storage solutions, as announced today.

The second-life batteries from GM have successfully undergone Redwood’s recycling process and are now powering a robust 12-megawatt microgrid at Redwood’s headquarters in Sparks, Nevada. This microgrid supplies clean electricity to a nearby data center owned by Crusoe, which operates 2,000 Graphics Processing Units (GPUs).

This microgrid is a key component of Redwood’s newly launched energy storage division, which focuses on transforming EV batteries into large-scale energy storage systems for the grid. Redwood has discovered through testing that many of the batteries arriving at their facilities still possess significant life, allowing for effective repurposing.

Instead of recycling the materials, Redwood keeps the battery packs intact and connects them to form a large-scale energy storage system capable of storing surplus electricity generated from renewable sources like solar and wind. The batteries powering the Crusoe project are charged by solar panels.

“We believe this initiative has the potential to outpace our core recycling business,” said JB Straubel, co-founder and CEO of Redwood. Currently, Redwood recovers about 70% of all used and discarded batteries in the United States and aims to deploy 20 gigawatt-hours of energy storage capacity by 2028.

While Redwood is not alone in this endeavor, its unique capability to integrate various battery packs from different manufacturers and chemistries may provide a competitive advantage in the energy storage market.

The partnership between GM and Redwood is an expansion of their existing agreement, marking a significant step forward in sustainable energy solutions.