GM signs non-binding MOU with Redwood Materials

GM signs non-binding MOU with Redwood Materials

General Motors (GM) has signed a non-binding memorandum of understanding (MOU) with Redwood Materials, a leader in sustainable lithium-ion battery recycling technology. The agreement, announced on July 16, 2025, outlines a strategic partnership to recycle production scrap from GM's Ultium Cells battery plants in Warren, Ohio and Spring Hill, Tennessee. The recycled materials will be used to power artificial intelligence (AI) centers in Nevada.

Under the terms of the MOU, GM and Redwood Materials will collaborate to deploy new and used electric vehicle (EV) batteries for storage systems that support a Nevada microgrid. This microgrid, in turn, will power a modular data center for AI infrastructure company Crusoe. The partnership aims to enhance American grid resiliency and promote sustainable energy solutions.

The MOU builds upon an existing collaboration between GM and Redwood Materials, which was announced in May 2024. This initial partnership focused on recycling production scrap from GM's battery plants to create high-quality battery materials. The new agreement expands on this partnership, incorporating the use of recycled battery materials to support AI infrastructure.

Redwood Materials, founded by former Tesla CTO JB Straubel, is known for its innovative hydrometallurgical process that recycles battery components with significantly reduced emissions and high material recovery rates. The company's technology helps optimize circular supply chains and contributes to the domestic production of EV battery components.

GM's commitment to sustainable energy and innovation is reflected in this partnership. By recycling production scrap and utilizing it to power AI centers, GM demonstrates its dedication to reducing waste and promoting renewable energy solutions. This strategic collaboration between GM and Redwood Materials is expected to have a positive impact on both the EV and AI industries.

References:
[1] https://forgeglobal.com/redwood-materials_stock/
[2] https://www.freep.com/story/money/cars/general-motors/2025/07/16/gm-inks-deal-to-recycle-ev-batteries-to-power-ai/85243320007/