GM and Redwood Power Data Centers with Repurposed EV Batteries
As the global demand for clean energy rises, companies like General Motors and Redwood Materials are finding innovative ways to extend the life of electric vehicle components. One of the most impactful developments is the use of repurposed EV batteries for powering data centers and large-scale storage solutions. This approach not only reduces electronic waste but also supports the renewable energy transition by storing excess solar and wind power. GM and Redwood's latest collaboration demonstrates how second-life batteries are reshaping the energy infrastructure, offering sustainable and scalable alternatives to traditional grid systems.
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Repurposed EV Batteries for Microgrids and Clean Energy Storage
General Motors is now providing both used and new EV batteries to Redwood Materials, a company known for battery recycling and circular economy innovations. Instead of simply breaking down old battery cells, Redwood tests and reuses those with remaining life. These repurposed EV batteries are then integrated into microgrids that store renewable energy for later use. A prime example is the 12-megawatt microgrid at Redwood’s Sparks, Nevada facility, which now powers a 2,000-GPU data center run by Crusoe. This system is supported by solar panels and showcases how stationary energy storage can help meet the rising demand for electricity in AI-powered data infrastructure without increasing carbon emissions.
Scaling Grid-Scale Storage with Second-Life EV Batteries
Redwood Materials launched its energy storage division publicly in June 2025, emphasizing second-life battery systems for grid-scale use. The company discovered that many of the EV battery packs it receives — including those from GM — still have significant energy potential. By keeping the battery modules intact, Redwood creates modular, scalable storage systems that can handle fluctuations in renewable power supply. JB Straubel, co-founder and CEO of Redwood, even stated that this sector could grow faster than their core battery recycling business. With a goal to deploy 20 gigawatt-hours of energy storage by 2028, Redwood is positioning itself as a major player in clean energy tech, and its ability to adapt various battery chemistries gives it a competitive edge.
Why New EV Batteries Are Also Being Repurposed
While using old EV batteries for grid storage might seem like the obvious move, GM is also supplying new EV batteries to Redwood. This move is strategic — giving GM flexibility as EV sales fluctuate. According to Cox Automotive, EV sales dipped 6.3% in Q2 2025, but are expected to rise again before key federal tax credits phase out in September. By offloading new batteries into energy storage projects, GM can balance inventory and participate in the fast-growing storage market, which saw a 57% year-over-year increase in Q1 installations. Meanwhile, this ensures that renewable power — often unpredictable — can be stored efficiently and used when needed, especially in high-demand areas like data centers. As more companies follow Redwood’s lead, the reuse of EV batteries for energy storage could become standard practice in clean infrastructure development.
The partnership between GM and Redwood Materials represents a future where repurposed EV batteries play a crucial role in powering our digital and energy needs. By giving electric vehicle batteries a second life, companies are addressing both environmental and industrial challenges. With scalable microgrids, renewable energy integration, and data center applications, these battery systems are no longer just a car component — they’re the backbone of tomorrow’s sustainable grid. As energy storage continues to outpace other sectors in growth, collaborations like this will be key to meeting global climate and power demands.
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