GM partners with Redwood Materials to accelerate energy storage systems
General Motors and Redwood Materials are collaborating to accelerate the deployment of energy storage systems utilizing new and second-life battery packs from GM’s electric vehicles, according to a press release.
The two companies recently signed a non-binding memorandum of understanding, the release says.
“The market for grid-scale batteries and backup power isn’t just expanding, it’s becoming essential infrastructure,” said Kurt Kelty, VP of batteries, propulsion, and sustainability at GM. “Electricity demand is climbing, and it’s only going to accelerate. To meet that challenge, the U.S. needs energy storage solutions that can be deployed quickly, economically, and made right here at home. GM batteries can play an integral role. We’re not just making better cars – we’re shaping the future of energy resilience.”
Redwood Materials launched Redwood Energy in June, the release says. The business deploys both used EV packs and new modules into fast, low-cost energy-storage systems. According to the release, the systems are built to meet surging power demand from AI data centers and other applications.
The memorandum enables Redwood to pair that integration expertise with both second-life GM EV packs and new U.S.-built batteries, which it says delivers a domestic solution from cell to system.
GM second-life electric vehicle batteries are being repurposed to help power the largest second-life battery development in the world and the largest micro-grid in North America at Redwood’s 12MW/63MWh installation in Sparks, Nevada. The development supports the AI infrastructure company Crusoe.
“Electricity demand is accelerating at an unprecedented pace, driven by AI and the rapid electrification of everything from transportation to industry,” said JB Straubel, founder and CEO of Redwood Materials. “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.”
The release says that U.S. electricity demand is expected to grow, driven in part by AI data centers that are expected to triple their share of national electricity usage from 4.4% in 2023 to 12% in 2028.
“As power consumption increases, there’s an expanding need for energy storage systems that can act to offset power outages and reinforce the grid when demand is high or supply is limited,” the release says.
GM and Redwood Materials will announce more details on their plans later in 2025, the release says.
BMW of North America announced last year a partnership with Redwood Materials to recycle lithium-ion batteries from all-electric, plug-in hybrid electric and mild hybrid BMW, MINI, Rolls-Royce and BMW Motorrad vehicles.
According to a news release, Redwood Materials will work directly with BMW’s network of nearly 700 dealerships, distribution centers, and other facilities across the country to recover end-of-life lithium-ion batteries and ensure critical minerals like nickel, cobalt, lithium, and copper are recycled and refined.
Ultimately, the OEM plans to return 95-98% of the critical minerals to the battery supply chain to build increasingly sustainable EVs.
Redwood has also signed similar recycling partnerships with Toyota, Ford, Volvo, and Volkswagen.
A 2022 New York Times article states that Redwood produces battery material from recovered or mined metals, including scrap from a battery plant run by Panasonic and Tesla.
However, because EV batteries can last up to 20 years, Redwood doesn’t have enough material to create it out of recycled metals fully — it is still forced to depend on mined resources, according to the article.
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