General Motors (GM) has taken a significant stride in the energy storage sector, signing a non-binding memorandum of understanding with Redwood Materials. This agreement aims to accelerate the deployment of energy storage systems using both new U.S.-manufactured batteries from GM and second-life battery packs from GM electric vehicles (EVs). The collaboration, announced on July 16, builds on the existing partnership between the two companies and marks a notable shift in GM’s advanced battery technology application beyond EVs.
Kurt Kelty, VP of batteries, propulsion, and sustainability at GM, emphasized the growing importance of grid-scale batteries and backup power systems. “The market for grid-scale batteries and backup power isn’t just expanding, it’s becoming essential infrastructure,” Kelty stated. He highlighted the increasing electricity demand and the need for quick, economical, and domestically produced energy storage solutions. “GM batteries can play an integral role. We’re not just making better cars – we’re shaping the future of energy resilience.”
Redwood Materials, which launched its Redwood Energy business in June, focuses on deploying used EV packs and new modules into fast, low-cost energy-storage systems. These systems are designed to meet the surging power demand from AI data centers and other applications. The memorandum enables Redwood to integrate its expertise with both second-life GM EV packs and new U.S.-built batteries, providing a comprehensive domestic solution from cell to system.
Already, GM second-life electric vehicle batteries are being repurposed to support the largest second-life battery development in the world at Redwood’s 12-MW/63-MWh installation in Sparks, Nevada. This installation powers the AI infrastructure company Crusoe. JB Straubel, founder and CEO of Redwood Materials, noted the unprecedented pace of electricity demand driven by AI and the rapid electrification of various sectors. “Both GM’s second-life EV batteries and new batteries can be deployed in Redwood’s energy storage systems, delivering fast, flexible power solutions and strengthening America’s energy and manufacturing independence.”
The collaboration between GM and Redwood Materials comes at a critical time, as U.S. electricity demand continues to grow. AI data centers, in particular, are expected to triple their share of national electricity usage from 4.4% in 2023 to 12% by 2028. This surge in power consumption underscores the need for robust energy storage systems that can offset power outages and reinforce the grid during peak demand or supply limitations.
GM and Redwood Materials plan to announce more details about their collaboration later in 2025. This partnership not only highlights the potential for second-life EV batteries but also underscores the broader implications for the energy sector. As the demand for electricity continues to rise, innovative solutions like those being developed by GM and Redwood Materials will be crucial in ensuring energy resilience and sustainability. The collaboration sets a precedent for other companies to explore similar initiatives, potentially reshaping the energy storage landscape and contributing to a more sustainable future.