The timing is no accident. As the first wave of EVs reaches end-of-life, the industry faces a new challenge: what to do with millions of used batteries. Rather than defaulting to recycling or disposal, GM and Redwood are prioritizing reuse. These batteries, though no longer suited for vehicle performance, still hold enough capacity to serve as stationary energy storage, offering a second life in high-demand environments like microgrids.
One such installation, already operating in Sparks, Nevada, demonstrates the model in action. Using repurposed GM batteries, the 63-megawatt-hour microgrid—the largest of its kind in North America—provides backup power to an AI infrastructure company. This is part of a broader trend: AI data centers are expected to consume up to 12% of U.S. electricity by 2028, triple their 2023 share. These facilities demand highly reliable, always-on energy—a need retired EV batteries are now helping to meet.
The GM–Redwood initiative also speaks to growing concerns around supply chain stability and mineral sourcing. Redwood collects used battery packs through GM’s national dealership and dismantler network, evaluating them for second-life use. Batteries unsuitable for reuse are recycled, with Redwood recovering lithium, cobalt, and nickel to feed back into domestic manufacturing.
This approach reduces landfill waste while helping to mitigate reliance on imported raw materials as it creates more consistent supply lines for future battery production. The model—integrating reuse, recycling, and redeployment—illustrates a circular economy in practice, aligning environmental goals with business incentives.
