General Motors and Redwood Materials are expanding their collaboration through a new non-binding memorandum of understanding. This agreement aims to create a domestic supply of energy storage systems by utilizing both new U.S.-manufactured batteries from GM and repurposed second-life battery packs from the automaker’s electric vehicles.
Key Highlights
- General Motors and Redwood Materials have signed an agreement to develop energy storage solutions.
- The partnership will use a combination of new U.S.-made GM batteries and second-life EV battery packs.
- This initiative supports the growing demand for grid-scale energy storage and backup power.
- The collaboration will provide essential infrastructure to meet rising electricity demand, partly driven by AI data centers.
- It strengthens the domestic supply chain for energy storage, from battery cell to complete system.
Meeting Surging Energy Demand
The collaboration is a strategic move to address the nation’s rapidly increasing electricity consumption. As industries electrify and technologies like artificial intelligence become more widespread, the need for reliable energy storage is becoming critical. U.S. electricity demand continues to climb, with AI data centers projected to nearly triple their share of national electricity usage by 2028.
This surge in power consumption highlights the necessity for robust energy storage systems that can stabilize the grid, prevent outages, and provide power during peak demand.
“The market for grid-scale batteries and backup power isn’t just expanding, it’s becoming essential infrastructure,” said Kurt Kelty, GM vice president of batteries, propulsion, and sustainability. “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.”
A Domestic Solution for Energy Resilience
This partnership leverages the unique strengths of both companies. General Motors (NYSE:GM), a leader in automotive innovation and EV technology, will supply the advanced batteries. Redwood Materials, through its new Redwood Energy business, will use its expertise to integrate these new and second-life batteries into cost-effective, large-scale energy storage systems.
“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.”
Building on Proven Success
GM and Redwood are already working together on repurposing used EV batteries. GM’s second-life electric vehicle batteries are currently part of the world’s largest second-life battery installation at Redwood’s 12MW/63MWh microgrid in Sparks, Nevada. This existing project supports the AI infrastructure company Crusoe and serves as a proof of concept for the expanded partnership.
By taking GM’s advanced battery technology beyond its electric vehicles, the two companies are creating a circular economy for batteries and shaping a more resilient energy future. Further details on the joint plans are expected to be announced later in 2025.
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