GM and Redwood Materials Partner to Repurpose EV Batteries into Energy Storage

General Motors and Redwood Materials are collaborating to repurpose EV batteries into energy storage systems to support the US's rising electricity demand. The partnership aims to help the grid keep up with power-hungry applications and the surge in electricity demand. Redwood will use both new and second-life GM batteries to create US-built energy storage systems, with the first project already underway in Nevada. The collaboration will help address the urgent need for scalable, domestic energy storage.

General Motors (GM) and Redwood Materials have entered into a strategic partnership to transform EV batteries into energy storage systems, aiming to meet the escalating demand for electricity in the United States. The collaboration, formalized through a non-binding memorandum of understanding, involves repurposing both new and second-life GM batteries into energy storage systems to support the grid's growing needs.

The partnership is driven by the need to keep pace with the increasing demand for electricity, particularly from power-hungry applications such as AI data centers and electrified transport. According to Kurt Kelty, GM’s VP of batteries, propulsion, and sustainability, "The market for grid-scale batteries and backup power isn’t just expanding, it’s becoming essential infrastructure. Electricity demand is climbing, and it’s only going to accelerate. GM batteries can play an integral role" [1].

Redwood Materials, founded by Tesla’s former chief technologist JB Straubel, launched a new venture called Redwood Energy in June. This venture repurposes EV battery packs into fast and cost-effective energy storage systems. The collaboration with GM allows Redwood to use second-life batteries from GM EVs and new GM battery modules to create US-built energy storage systems [2].

The first project under this partnership is already underway in Nevada, where Redwood's 12MW/63MWh installation is the largest microgrid in North America. This installation supports Crusoe, an AI infrastructure company, demonstrating the immediate impact of the partnership [1].

The collaboration comes at a critical time as AI data centers are expected to triple their share of US electricity use, from 4.4% in 2023 to 12% by 2028. This rapid increase in demand highlights the urgent need for scalable, domestic energy storage solutions [1].

GM and Redwood Materials plan to share more details on their plans later this year, providing further insight into how they intend to leverage this partnership to meet the growing energy demands of the US [1].

References:
[1] https://electrek.co/2025/07/16/redwood-gm-ev-batteries-energy-storage/
[2] https://www.theverge.com/news/708236/gm-redwood-battery-energy-storage-ev