Restating the headline: GM and Redwood Materials Develop Grid-Scale Batteries for New and Used Vehicles
General Motors (GM) and Redwood Materials have announced a promising partnership aimed at repurposing both new and second-life GM electric vehicle (EV) batteries into grid-scale energy storage systems. This collaboration is a significant step towards addressing the growing need for rapidly deployable, economical, and domestically manufactured energy storage solutions to support electricity demand surges, particularly from industries such as AI data centers.
In a non-binding memorandum of understanding (letter of intent), GM and Redwood Materials, along with its subsidiary Redwood Energy, have agreed to accelerate the deployment of energy storage systems using both new batteries manufactured in the U.S. and used EV battery packs from GM vehicles. Redwood Energy, launched in June 2025, specializes in integrating these batteries into fast, cost-effective energy storage modules.
One of the most notable projects already underway is a 12-MW/63-MWh second-life battery installation in Sparks, Nevada. This installation provides resilient energy for Crusoe, a digital infrastructure firm building AI and compute platforms, making it one of the largest second-life battery projects globally.
The partnership leverages GM’s advanced battery technology and Redwood’s expertise in battery recycling and integration, aiming to strengthen U.S. manufacturing and energy independence. JB Straubel, Redwood’s founder and CEO, believes that the hybrid strategy gives the company flexibility to meet deployment needs quickly while reducing waste and reliance on foreign supply chains.
The collaboration builds on previous partnerships between the two companies related to battery recycling and materials recovery. Redwood's approach combines used battery packs from EVs, like those produced by GM, with new modules manufactured domestically. The shift towards battery-based grid storage is seen as an increasingly vital supplement to address limited supply chains for new battery components.
Looking ahead, GM and Redwood Materials expect to provide more detailed announcements later in 2025, signaling that the partnership is still evolving and expanding. The collaboration aims to meet the rapidly accelerating electricity demand driven by AI, electrification of transportation, and industry, by offering flexible, scalable grid energy storage solutions with a strong emphasis on domestic sourcing and manufacturing.
Kurt Kelty, GM’s vice president of batteries, propulsion, and sustainability, stated that the U.S. needs energy storage solutions that can be deployed quickly, economically, and domestically. GM’s battery systems, already powering millions of electric vehicles, can play a vital role in building resilient infrastructure capable of responding to energy shortages and stabilizing peak loads.
In summary, the collaboration between GM and Redwood Materials is a promising initiative that not only addresses a growing energy infrastructure need but also supports U.S. manufacturing and sustainability goals. With broader deployment plans expected to be elaborated by late 2025, this partnership could pave the way for a more sustainable and resilient energy future.
This partnership between General Motors (GM) and Redwood Materials is aimed at utilizing both new and used EV battery packs from GM vehicles, with the goal of integrating them into fast, cost-effective energy storage modules for business and technology applications. The collaboration is also expected to leverage GM's advanced battery technology and Redwood's expertise in battery recycling and integration, with a focus on strengthening U.S. manufacturing and energy independence.
