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GM And Redwood Materials Collaborate To Enhance Energy Storage With U.S.-Manufactured Batteries
General Motors (GM) has entered into a non-binding agreement with Redwood Materials to speed up the deployment of energy storage systems. This initiative will utilise both new batteries made in the U.S. by GM and second-life battery packs from GM's electric vehicles. This partnership signifies a major advancement in extending GM's battery technology beyond electric vehicles, building on their existing collaboration with Redwood.
In June, Redwood Materials introduced Redwood Energy, a new venture focused on deploying used EV packs and new modules into rapid, cost-effective energy-storage systems. These systems are designed to meet the increasing power demand from AI data centres and other applications. The recent memorandum allows Redwood to combine its integration expertise with GM's second-life EV packs and newly manufactured U.S. batteries, providing a domestic solution from cell to system.
The demand for electricity in the U.S. is rising, partly due to AI data centres expected to triple their share of national electricity usage from 4.4% in 2023 to 12% by 2028. As power consumption grows, there is an increasing need for energy storage systems that can mitigate power outages and support the grid during high demand or limited supply periods.
GM's second-life electric vehicle batteries are already being repurposed at Redwood’s 12MW/63MWh installation in Sparks, Nevada. This facility supports the AI infrastructure company Crusoe and represents the largest second-life battery development globally and North America's largest microgrid.
Kurt Kelty, VP of batteries, propulsion, and sustainability at GM, stated: "The market for grid-scale batteries and backup power isn’t just expanding; it’s becoming essential infrastructure." He emphasised that as electricity demand increases, the U.S. needs quick-to-deploy, economical energy storage solutions made domestically. "We’re not just making better cars - we’re shaping the future of energy resilience," he added.
JB 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." He highlighted that both GM’s second-life EV batteries and new ones could be used in Redwood’s energy storage systems to provide fast and flexible power solutions while enhancing America’s energy independence.
GM and Redwood Materials plan to reveal more details about their collaboration in 2025. Their joint efforts aim to address growing electricity demands through innovative energy storage solutions that enhance grid reliability and support renewable energy integration.
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