General Motors (GM) has signed a non-binding memorandum of understanding with Redwood Materials to scale up the deployment of energy storage systems, using both new U.S.-made batteries and repurposed battery packs from GM’s electric vehicles.
The partnership aims to extend GM’s battery technology beyond automotive applications and into the growing energy storage market. The move follows the launch of Redwood Energy in June, a business arm of Redwood Materials focused on deploying new and second-life battery modules into low-cost, rapidly deployable storage systems to meet surging electricity demand.
Kurt Kelty, GM’s Vice President of Batteries, Propulsion, and Sustainability, noted that rising power needs, especially from AI data centres and electrified transport, are driving demand for domestic energy storage. “The U.S. needs energy storage solutions that can be deployed quickly and economically, and GM batteries can play a key role in that transition,” Kelty said.
The agreement will allow Redwood to integrate GM’s used and new batteries into its storage systems, providing a U.S.-based solution from cell to system. GM’s second-life EV batteries are already being used in the world’s largest second-life battery installation and microgrid in Sparks, Nevada, a 12MW/63MWh system supporting the AI infrastructure company Crusoe.
JB Straubel, founder and CEO of Redwood Materials, described the collaboration as a response to rapidly increasing electricity demand, stating that GM’s batteries will support flexible storage solutions while reinforcing U.S. energy and manufacturing independence.
According to recent projections, data centres could account for up to 12% of U.S. electricity consumption by 2028, up from 4.4% in 2023. The need for grid-scale storage is rising in parallel, as utilities seek to manage peak loads and prevent power disruptions.
Further details of the GM–Redwood partnership are expected to be announced later in 2025.
