GM, Redwood Materials Pursue Use of Vehicle Batteries for Energy Storage

General Motors (GM) has signed a non-binding memorandum of understanding with Redwood Materials, an agreement meant to accelerate deployment of energy storage systems using both new U.S.-manufactured batteries from GM, and second-life battery packs from GM electric vehicles (EVs).

This collaboration, announced July 16, marks a significant step toward taking GM’s advanced battery technology beyond EVs and builds on GM and Redwood’s existing collaboration. (You can read the blog post about the agreement here.)

“The market for grid-scale batteries and backup power isn’t just expanding, it’s becoming essential infrastructure,” said Kurt Kelty, VP of batteries, propulsion, and sustainability at GM. “Electricity demand is climbing, and it’s only going to accelerate. To meet that challenge, the U.S. needs energy storage solutions that can be deployed quickly, economically, and made right here at home. GM batteries can play an integral role. We’re not just making better cars – we’re shaping the future of energy resilience.”

Redwood Materials in June of this year launched Redwood Energy, a new business that deploys both used EV packs and new modules into fast, low-cost energy-storage systems built to meet surging power demand from artificial intelligence (AI) data centers and other applications. The memorandum announced Wednesday enables Redwood to pair that integration expertise with both second-life GM EV packs and new U.S.-built batteries, delivering a domestic solution from cell to system.

Already, GM second-life electric vehicle batteries are being repurposed to help power the largest second-life battery development in the world at Redwood’s 12-MW/63-MWh installation in Sparks, Nevada, supporting the AI infrastructure company Crusoe.

“Electricity demand is accelerating at an unprecedented pace, driven by AI and the rapid electrification of everything from transportation to industry,” said JB Straubel, founder and CEO of Redwood Materials. “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.”

U.S. electricity demand continues to grow, driven in part by AI data centers that are on track to triple their share of national electricity usage from 4.4% in 2023 to 12% by 2028. As power consumption increases, there’s an expanding need for energy storage systems that can act to offset power outages and reinforce the grid when demand is high or supply is limited.

GM and Redwood Materials expect to announce more details on their plans later in 2025.

—This post was edited by POWER and reprinted with permission of GM.

Editor’s Note: POWER is at the forefront of coverage for data centers, particularly related to how technology companies will source the power needed to operate their artificial intelligence ventures. Read our POWER Primer, “Focus on Data Centers,” and register today to attend our inaugural Data Center POWER eXchange event, scheduled Oct. 28 in Denver, Colorado.