In a strategic move to bolster America’s energy resilience and support the growing demand for grid-scale power, General Motors (GM) has signed a non-binding memorandum of understanding (MoU) with Redwood Materials, aimed at accelerating the deployment of advanced energy storage systems using both new U.S.-manufactured batteries and second-life battery packs from GM electric vehicles.
The partnership builds on an existing collaboration between the two companies and signals a broader ambition: to extend the role of GM’s EV battery technology beyond vehicles and into critical energy infrastructure.
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. “GM batteries can play an integral role. We’re not just making better cars — we’re shaping the future of energy resilience.
Repurposing Batteries to Reinforce the Grid
Redwood Materials, led by former Tesla co-founder JB Straubel, recently launched Redwood Energy, a new venture deploying both used EV battery packs and new battery modules into low-cost, high-speed energy storage systems. These systems are built to meet surging demand from AI data centers, industrial sectors, and backup grid applications.
The new MoU enables Redwood to integrate GM’s second-life batteries and new U.S.-built cells into its energy storage architecture, offering a domestic, sustainable solution from cell to system.
Electricity demand is accelerating at an unprecedented pace,” said Straubel. “Both GM’s second-life EV batteries and new batteries can be deployed in Redwood’s energy storage systems, delivering fast, flexible power solutions and strengthening America’s energy and manufacturing independence.
Proven Deployment in Nevada
GM’s repurposed EV batteries are already in action, helping to power North America’s largest second-life battery project and microgrid — a 12MW/63MWh installation in Sparks, Nevada, supporting AI infrastructure company Crusoe.
Addressing a Growing National Need
The urgency for scalable energy storage is rising fast. According to industry projections, AI data centers are expected to triple their share of national electricity use, jumping from 4.4% in 2023 to 12% by 2028. This growth places immense pressure on the national grid, amplifying the need for systems that can store and deploy electricity during peak loads or outages.
The GM–Redwood partnership aims to deliver rapidly deployable, cost-effective, and U.S.-made energy storage solutions that are vital to the country’s grid resilience and clean energy transition.
