General Motors (GM) and Redwood Materials have inked a non-binding memorandum of understanding (MoU) with the goal of expediting the deployment of advanced energy storage systems using both new U.S.-manufactured batteries and second-life battery packs from GM electric vehicles. This is a strategic move to support the increasing demand for grid-scale power and strengthen America’s energy resilience.
The alliance strengthens an already-existing connection between the two businesses and reflects a larger goal: to expand the use of GM’s EV battery technology beyond automobiles and into vital energy infrastructure.
Kurt Kelty, GM’s Vice President of Batteries, Propulsion, and Sustainability, stated that the market for grid-scale batteries and backup power is not only growing but is also becoming vital infrastructure. “GM batteries may be quite important. We’re influencing the direction of energy resiliency in addition to producing better automobiles.
Battery Repurposing to Strengthen the Grid
Under the direction of former Tesla co-founder JB Straubel, Redwood Materials recently established Redwood Energy, a new business that integrates new and old EV battery modules into inexpensive, fast energy storage solutions. These systems are designed to handle the growing demand from backup grid applications, industrial sectors, and AI data centres.
Through the new Memorandum of Understanding, Redwood will be able to include fresh U.S.-made cells and GM’s second-life batteries into its energy storage architecture, providing a domestic, sustainable solution from cell to system.
“The demand for electricity is increasing at a never-before-seen rate,” Straubel added. Redwood’s energy storage systems can use both new and used GM EV batteries, providing quick and adaptable power solutions and bolstering American manufacturing and energy independence.
Certified Implementation in Nevada
The largest second-life battery project and microgrid in North America, a 12 MW/63 MWh installation in Sparks, Nevada, is powered by GM’s reused EV batteries and supports the AI infrastructure startup Crusoe.
Meeting an Increasing National Need
Scalable energy storage is becoming increasingly important. Industry estimates indicate that by 2028, AI data centres will account for 12% of the nation’s electricity consumption, up from 4.4% in 2023. The national grid is under tremendous strain as a result of this expansion, which increases the demand for systems that can store and distribute electricity during outages or peak loads.
The goal of the GM-Redwood partnership is to provide energy storage solutions that are affordable, quickly deployable, and built in the United States. These solutions are essential to the nation’s grid resiliency and clean energy transition.