When Car Batteries Find a Second Life

Redwood and B2U link EV recycling with grid storage to boost domestic supply chains and renewable integration

31 Oct 2025

The US battery industry is entering a new phase of collaboration as companies seek to connect electric vehicles, energy storage, and recycling into a single circular ecosystem. Partnerships across the sector are reshaping how materials are sourced, reused, and redeployed to strengthen the nation’s clean energy supply chain.

Redwood Materials, a leading battery recycling company, expanded its network of partnerships in July 2025 through a Memorandum of Understanding with General Motors and a set of new recycling agreements. The company aims to scale operations that give batteries a second life while reducing reliance on imported materials. Backed by major automotive and semiconductor groups, Redwood is advancing a vertically integrated approach to battery production and reuse.

B2U Storage Solutions is demonstrating the potential of repurposed electric vehicle batteries for grid use. Its latest project in Texas, now under construction and due to become operational later this year, will convert hundreds of retired EV battery packs into a large-scale storage system to support local electricity demand. “The walls between transportation and power are coming down,” said a BloombergNEF analyst. “Companies bridging that divide will define the next decade of clean energy.”

Industry analysts say such initiatives could bolster domestic energy resilience by reclaiming key minerals and localizing manufacturing. Expanded storage capacity also helps stabilise power networks and integrate variable renewable sources such as solar and wind.

Regulatory and technical challenges remain, particularly around scaling second-life battery systems and ensuring consistent safety standards. Yet momentum continues to build around the idea of a circular energy economy. As reuse technologies mature, the boundaries between electric mobility and stationary power are fading. Batteries that drive cars today could soon play a central role in powering America’s cities.