GM and Redwood Partner to Scale Energy Storage with New & Second Life EV Batteries

General Motors (GM) has signed a non-binding memorandum of understanding (MoU) with Redwood Materials to accelerate the deployment of advanced energy storage systems in the United States. 

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The partnership will leverage both newly manufactured GM batteries and second-life EV battery packs to meet rising energy demands, particularly from AI data centers and the broader electrification wave.

Expanding Battery Applications Beyond EVs

This initiative marks a strategic expansion of GM’s battery ecosystem, moving beyond electric vehicles to support critical energy infrastructure. It also builds on GM and Redwood’s existing collaboration aimed at enhancing domestic battery supply chains and sustainability.

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“The market for grid-scale batteries and backup power isn’t just expanding, it’s becoming essential infrastructure,” said Kurt Kelty, GM’s Vice President of Batteries, Propulsion, and Sustainability. “We’re not just making better cars, we’re shaping the future of energy resilience.”

Redwood Energy to Lead System Deployment

Redwood Materials, led by Tesla co-founder JB Straubel, recently launched Redwood Energy, a new division focused on delivering modular, cost-effective energy storage solutions. These systems will integrate GM’s new US-made battery cells along with refurbished second-life EV batteries, creating scalable storage units that can be rapidly deployed.

“Our collaboration with GM allows us to create fast, flexible power solutions with a domestic supply chain from cell to system,” said Straubel. “This is essential for America’s energy and manufacturing independence.”

Real-World Deployments Underway

GM’s second-life EV batteries are already being repurposed at Redwood’s 12 MW/63 MWh installation in Sparks, Nevada, which is among the world’s largest second-life battery storage projects. The facility supports Crusoe, an AI infrastructure company, and forms the largest microgrid in North America.

This installation highlights the viability of reusing EV batteries to support growing energy needs while reducing waste and extending battery lifecycles.

Rising Electricity Demand Driving Storage Needs

The announcement comes as US electricity demand surges, fueled by AI data centers, which are expected to triple their energy consumption from 4.4 percent in 2023 to 12 percent by 2028. In this context, grid-scale storage systems are becoming vital for grid stability, backup power, and renewable energy integration.

By repurposing EV batteries and scaling domestic production, the GM-Redwood partnership aims to deliver a resilient, sustainable energy storage solution that supports both economic growth and clean energy goals.