GM will send batteries — new and old — to Redwood Materials, which will assemble them into large packs capable of supporting data centers and the grid.

General Motors and Redwood Materials are joining forces yet again, this time with the intent to build energy storage units made out of recycled EV batteries.

General Motors is partnering with Redwood Materials, a battery recycler and energy company, to supply U.S.-built batteries for backup energy storage systems. Why it matters: The companies are responding to the soaring demand for battery storage systems that can offset power outages and reinforce the grid during peak demand.