GM and Redwood Materials Join Forces for Sustainable Energy Storage

In a pioneering move towards a more sustainable energy future, General Motors and Redwood Materials are forging a significant alliance. This partnership is set to revolutionize energy storage by repurposing electric vehicle batteries. Their collaboration underscores a critical effort to meet the rapidly increasing electricity demands across various sectors, including cutting-edge AI data centers, burgeoning electrified transport, and expanding industrial operations.
Transforming EV Batteries into Grid-Scale Energy Solutions
On a significant summer day, July 16, 2025, General Motors, a global automotive giant, and Redwood Materials, a leader in battery recycling and repurposing, officially formalized their intent through a non-binding memorandum of understanding. This pivotal agreement marks the beginning of an innovative journey to convert both newly produced and end-of-life electric vehicle batteries from GM into robust energy storage systems. This strategic initiative directly addresses the growing energy requirements of the United States, aiming to bolster grid stability and capacity.
Kurt Kelty, GM's Vice President of Batteries, Propulsion, and Sustainability, emphasized the growing necessity of grid-scale batteries, stating, “The market for grid-scale batteries and backup power isn’t just expanding, it’s becoming essential infrastructure.” He highlighted the accelerating demand for electricity and GM batteries' integral role in this evolution. Echoing this sentiment, JB Straubel, founder and CEO of Redwood Materials, noted the unprecedented pace of electricity demand acceleration, affirming that “Both GM’s second-life EV batteries and new batteries can be deployed in Redwood’s energy storage systems, delivering fast, flexible power solutions.”
Redwood Materials, through its recently launched venture, Redwood Energy, specializes in transforming EV battery packs into efficient and cost-effective energy storage solutions. This partnership specifically enables Redwood to utilize GM's second-life EV batteries and new battery modules to construct domestically produced energy storage systems. A tangible example of this innovation is already operational in Sparks, Nevada, where Redwood hosts the world’s largest second-life battery project. This impressive 12MW/63MWh installation functions as North America's largest microgrid, providing crucial support to Crusoe, an AI infrastructure company.
The urgency for such sustainable solutions is underlined by projections indicating that AI data centers alone are expected to dramatically increase their share of US electricity consumption, from 4.4% in 2023 to a substantial 12% by 2028. This looming energy surge necessitates immediate and scalable domestic energy storage capabilities. Both General Motors and Redwood Materials have indicated that more comprehensive details regarding their collaborative plans will be released later in the year, promising further advancements in this critical sector.
This forward-thinking collaboration between General Motors and Redwood Materials serves as a powerful testament to the transformative potential of cross-industry innovation. It highlights a proactive approach to environmental stewardship and economic sustainability, demonstrating how corporate synergy can drive significant progress. By extending the lifecycle of EV batteries and integrating them into the national energy grid, this partnership not only mitigates waste but also establishes a resilient and flexible energy infrastructure essential for future technological advancements and societal needs. This initiative inspires a broader embrace of circular economy principles, proving that responsible resource management can simultaneously fuel economic growth and environmental protection.