Major automaker General Motors, in partnership with Redwood Materials and U.S. Batteries, will embark on a joint venture to design and produce energy storage systems domestically.
In a significant development, General Motors (GM) and Redwood Materials have signed a memorandum of understanding to jointly develop energy storage solutions. This collaboration, an extension of their existing partnership, marks a significant step towards expanding GM’s advanced battery technology beyond electric vehicles (EVs) to support critical grid-scale energy storage and backup power infrastructure.
The collaboration is particularly focused on addressing the growing demand for electricity, particularly from Artificial Intelligence (AI) data centers. The electricity consumption of AI data centers is projected to triple by 2028, and the systems being developed by GM and Redwood Materials are designed to meet this escalating demand.
One of the key projects in this collaboration is the repurposing of GM’s second-life EV batteries to help power Redwood Materials’ microgrid installation in Sparks, Nevada. This facility, which uses spent GM batteries, is noted as the world’s largest second-life battery development and North America’s largest microgrid, supporting an AI infrastructure company. The 12-megawatt, 63-megawatt-hour facility in Sparks serves as a pilot application for the energy storage solutions being developed by GM and Redwood Materials.
In June 2025, Redwood Materials launched a new business unit called Redwood Energy. This unit focuses on rapidly deploying cost-effective energy storage systems built from both used GM EV battery packs and new GM battery modules. The aim is to target surging demand from applications like AI data centers.
GM emphasizes the strategic importance of U.S.-made, quickly deployable energy storage solutions to meet the escalating national electricity demand. Kurt Kelty, GM’s VP of batteries and sustainability, stated that the collaboration is part of “shaping the future of energy resilience.”
The project focuses on new GM batteries produced in the United States and used battery packs from GM electric vehicles. This comprehensive "cell to system" approach for energy storage leverages the circular lifecycle of EV batteries to address the growing need for grid-scale and backup power infrastructure in the U.S. Further details on plans are expected to be announced later in 2025.
In summary, the partnership between GM and Redwood Materials is advancing energy storage solutions by repurposing second-life EV batteries alongside new battery tech for fast, scalable deployments primarily aimed at critical infrastructure like AI data centers. The ongoing projects in Nevada demonstrate the integration of these energy storage solutions, positioning both companies at the forefront of a promising and necessary development in the realm of renewable energy and AI infrastructure.
The partnership between General Motors (GM) and Redwood Materials is focusing on addressing the escalating electricity demand from AI data centers using new GM batteries produced in the United States and repurposed second-life EV batteries. This collaboration in the technology sector is designed to meet the growing demand from AI data centers, with Redwood Energy, a new business unit launched by Redwood Materials, aiming to rapidly deploy cost-effective energy storage systems.
