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 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.