GM and Redwood Materials to pursue use of US-built batteries for energy storage

General Motors has signed a non-binding memorandum of understanding with Redwood Materials meant to accelerate deployment of energy storage systems using both new US-manufactured batteries from GM and second-life battery packs from GM electric vehicles.

This collaboration marks a significant step toward taking GM’s advanced battery technology beyond EVs and builds on GM and Redwood’s existing collaboration.

In June, Redwood Materials launched Redwood Energy, a new business that deploys both used EV packs and new modules into fast, low-cost energy-storage systems built to meet surging power demand from AI data centers and other applications. The memorandum announced today enables Redwood to pair that integration expertise with both second-life GM EV packs and new US-built batteries, delivering a domestic solution from cell to system.

Already, GM second-life electric vehicle batteries are being repurposed to help power the largest second-life battery development in the world and the largest microgrid in North America, at Redwood’s 12MW/63MWh installation in Sparks, Nevada, supporting the AI infrastructure company Crusoe.

US electricity demand continues to grow, driven in part by AI data centers that are on track to triple their share of national electricity usage from 4.4% in 2023 to 12% by 2028. As power consumption increases, there’s an expanding need for energy storage systems that can act to offset power outages and reinforce the grid when demand is high or supply is limited.

GM and Redwood Materials expect to announce more details on their plans later in 2025.