GM and Redwood Materials sign MOU for energy storage collaboration

General Motors has signed a non-binding memorandum of understanding with Redwood Materials to support the deployment of energy storage systems. The systems will utilize both newly manufactured batteries from GM and second-life battery packs from GM electric vehicles. The agreement builds on the existing relationship between the two companies.

The partnership is aimed at expanding the use of GM’s battery technology beyond automotive applications. According to GM, the collaboration is intended to address increasing electricity demand in the United States by contributing to energy storage infrastructure. GM batteries, both new and repurposed, are expected to be used in energy storage systems for grid support and backup power.

Redwood Materials recently launched Redwood Energy, a business unit that focuses on deploying energy storage systems using both used electric vehicle batteries and new battery modules. The goal is to create systems that can meet rising power demands in applications such as artificial intelligence data centers. The memorandum allows Redwood to incorporate GM’s second-life and new batteries into these systems, forming a domestic supply chain from battery cell to storage system.

Currently, GM’s second-life EV batteries are already in use at Redwood’s 12MW/63MWh installation in Sparks, Nevada. This facility supports a microgrid and serves AI infrastructure provider Crusoe. Redwood states that this is the largest second-life battery development in the world and the largest microgrid in North America.

Electricity consumption in the U.S. is projected to grow significantly. AI data centers are expected to account for 12% of the country’s total electricity use by 2028, up from 4.4% in 2023. As power demands increase, energy storage systems are being positioned as a way to stabilize supply and provide backup during outages or peak usage.

GM and Redwood Materials indicated that more details regarding their plans will be released later in 2025.