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.

The automaker’s move comes as the Trump Administration policies are expected to reduce demand for batteries for electric vehicles.