GM, Redwood Sign MOU for US-Manufactured Batteries, Second-Life Packs

GM and Redwood Materials have signed a non-binding memorandum of understanding to accelerate the deployment of energy storage systems using new batteries from GM and second-life battery packs from GM electric vehicles. The companies expect to announce more details on their plans later in 2025.

Title: GM and Redwood Materials Collaborate on Energy Storage Systems

General Motors (GM) and Redwood Materials have signed a non-binding memorandum of understanding to accelerate the deployment of energy storage systems using both new batteries from GM and second-life battery packs from GM electric vehicles. The partnership, announced on July 16, 2025, aims to address the growing demand for electricity in the United States, driven in part by the increasing power consumption of AI data centers.

According to Kurt Kelty, GM's VP of batteries, propulsion, and sustainability, the market for grid-scale batteries and backup power is not just expanding but becoming essential infrastructure. "Electricity demand is climbing, and it's only going to accelerate," Kelty stated. "GM batteries can play an integral role in meeting this challenge" [1].

Redwood Materials, a battery recycling pioneer, launched Redwood Energy in June 2025, a new venture focused on deploying both used EV packs and new modules into energy storage systems. The memorandum announced this week allows Redwood to integrate its expertise with both second-life GM EV packs and new U.S.-built batteries from GM [1][2].

The partnership is already operational, with GM's second-life electric vehicle batteries powering the largest second-life battery development in the world and the largest microgrid in North America. Redwood's 12MW/63MWh installation in Sparks, Nevada, supports AI infrastructure company Crusoe [1][2].

JB Straubel, founder and CEO of Redwood Materials, noted that electricity demand is accelerating at an unprecedented pace. "Both GM's second-life EV batteries and new batteries can be deployed in Redwood's energy storage systems, delivering fast, flexible power solutions," Straubel stated [1][2].

The collaboration comes at a critical time as AI data centers alone are expected to triple their share of national electricity usage from 4.4% in 2023 to 12% by 2028 [1][2]. This increasing demand underscores the urgent need for scalable, domestic energy storage solutions.

GM and Redwood Materials plan to reveal more details about their collaboration later in 2025. Their joint efforts aim to enhance grid reliability and support the integration of renewable energy [1][2].

References
[1] https://www.drivespark.com/four-wheelers/2025/gm-redwood-materials-us-built-batteries-energy-storage-011-73607.html
[2] https://electrek.co/2025/07/16/redwood-gm-ev-batteries-energy-storage/