The Afterlife of EV Batteries Is Already Powering the Grid

A GM and Redwood MOU shows reused EV batteries already powering a 12 MW microgrid, signaling why automakers must plan second-life strategies early

13 Jan 2026

A partnership between General Motors and battery recycler Redwood Materials is highlighting how electric vehicle batteries are beginning to take on a second role as energy assets after they are retired from cars.

The two companies are working under a non-binding memorandum of understanding rather than a final contract. Even so, the arrangement signals a strategic push to reuse EV battery packs that are no longer ideal for driving but still retain substantial capacity. Instead of being sent straight to recycling, these batteries are being redeployed in stationary energy storage systems serving commercial buildings, data centres and local grids.

The approach is already being used at scale. In Nevada, repurposed EV batteries are supplying a 12 megawatt, 63 megawatt-hour microgrid that provides electricity to energy-intensive computing facilities operated by Crusoe. The project shows that second-life batteries can store surplus power and discharge it during periods of peak demand, supporting grid stability while lowering costs for users.

For GM, the initiative reflects a broader shift in how automakers view batteries. Executives increasingly describe them as long-term energy assets rather than components with a single automotive life. Extending their use could reduce overall system costs, limit waste and strengthen domestic battery strategies at a time when supply chains for critical materials remain tight.

Redwood Materials brings experience in battery processing and materials recovery. Founded by former Tesla executive JB Straubel, the company has focused on building a closed-loop battery supply chain. Redwood estimates that many EV batteries still have about 70 per cent of their original capacity when they are removed from vehicles, making them suitable for less demanding stationary applications. Reuse, followed by recycling at a later stage, allows more economic value to be extracted from each pack.

As EV sales rise, managing batteries at the end of their first life is becoming a growing issue for the industry. Second-life use offers a way to ease pressure on recycling capacity while helping meet increasing demand for energy storage. However, regulatory frameworks covering transport, safety and deployment of reused batteries are still evolving, adding uncertainty to large-scale rollouts.

Even so, partnerships linking carmakers, recyclers and energy users suggest that EV batteries are set to remain productive well beyond their time on the road.