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The Shredder is the predecessor to the Needler and one of the few ammunition-based weapons used by the Covenant Empire.
Despite having noticeable visual and colouration differences to the Needler, the Shredder operates, fires and affects targets in an almost identical manner; When fired, the crystals are fed into the weapon and expelled as piercing shards through the muzzle and towards the target, where they will embed themselves within the target’s flesh before detonating and causing extreme internal damage. If seven of these needles embed themselves within a target before detonating, a supercombine explosion will occur that will kill the target instantly. Where the Shredder differs from the Needler is through the ammunition used by the weapon.
The orange-red crystalline ammunition fired by the Shredder appears to be a raw, unrefined version of the Needler’s purple-coloured ammunition, lacking the more unique properties while retaining their deadliness; hen fired, these needles fly in a straight trajectory at a greater velocity, allowing the projectiles to injure targets on impact and detonate after a few seconds, essentially striking the target twice in one shot. However, they cannot home in on targets and lack the ability to effectively bypass personal energy shielding, shattering or ricocheting on impact like most ballistic ammunition.
Once easier methods for mining purple crystals were accomplished, the Needler was created and eventually phased out the Shredder as standard issue to regular troops. It has been relegated it to the Brutes (who are not seen fit by the Elites to be issued the latest in weaponry), who enjoy using it due to sharing many similarities to that of their traditional Brute Spiker.
The Sepratist armies got a hold of the weapons from Kig-Yar merchants, who were illegaly selling the weapons.

@epitaph200 would love this
Yep