Redwood Materials and General Motors (GM) have signed a non-binding memorandum of understanding (MOU) to accelerate the deployment of grid-scale energy storage systems using both new U.S.-built batteries from GM and repurposed battery packs from GM electric vehicles. The agreement builds on the companies’ existing collaboration and extends GM’s advanced battery technology beyond electric vehicles.
Under the MOU, Redwood will integrate GM’s freshly manufactured cells and second-life EV modules into its recently launched Redwood Energy platform. Introduced in June, Redwood Energy deploys hybrid storage solutions that combine used EV packs and new battery units in fast, cost-effective systems designed to support AI data centers and other high-demand applications.
Kurt Kelty, GM vice president of batteries stated, “The market for grid-scale batteries and backup power isn’t just expanding, it’s becoming essential infrastructure. 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 has already repurposed GM EV batteries in a 12 MW/63 MWh microgrid in Sparks, Nevada—the largest second-life battery project globally and the biggest microgrid in North America—supporting AI infrastructure provider Crusoe.
J.B. Straubel, founder and CEO of Redwood Materials, noted, “Electricity demand is accelerating at an unprecedented pace, driven by AI and the rapid electrification of everything from transportation to industry. 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. power consumption is projected to increase, with AI data centers expected to rise from 4.4% of national electricity use in 2023 to 12% by 2028. As demand grows, scalable energy storage systems are needed to buffer outages and reinforce the grid during peak loads or limited supply. GM and Redwood Materials plan to share additional details of their joint efforts later in 2025.
Source: Redwood Materials
