
Image courtesy of Redwood Materials and GM
Automaker General Motors has signed a nonbinding memorandum of understanding with battery recycler Redwood Materials the companies say is meant to accelerate the deployment of energy storage systems using both new United States-manufactured batteries from GM and second-life battery packs from GM electric vehicles (EVs.)
They say this collaboration marks “a significant step” toward taking GM’s advanced battery technology beyond EVs and builds on an existing partnership between the two companies.
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“The market for grid-scale batteries and backup power isn’t just expanding, it’s becoming essential infrastructure,” says Kurt Kelty, vice president of batteries, propulsion and sustainability at Detroit-based 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.”
In June, Carson City, Nevada-based Redwood launched Redwood Energy, a new business that deploys used EV packs and new modules into fast, low-cost energy storage systems built to meet surging power demand from artificial intelligence (AI) data centers and other applications. The companies say the memorandum they’ve signed will enable Redwood to pair its integration expertise with both second-life GM EV packs and new U.S.-built batteries, delivering a domestic solution “from cell to system.”
The companies note that GM EV batteries are being repurposed to help power Redwood’s 12-megawatt/63-megawatt-hour installation in Sparks, Nevada, which supports the AI infrastructure company Crusoe. Redwood claims its Sparks microgrid is the largest in North America.
“Electricity demand is accelerating at an unprecedented pace, driven by AI and the rapid electrification of everything from transportation to industry,” Redwood founder and CEO JB Straubel says. “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 companies claim U.S. electricity demand continues to grow, driven in part by AI data centers that are on track to triple their share of national electricity usage from 4.4 percent in 2023 to 12 percent by 2028, according to U.S. Department of Energy data.
“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 companies say, adding that they expect to announce more details on their plans later this year.
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