General Motors has signed a non-binding memorandum of understanding with Redwood Materials to fast-track the deployment of energy storage systems across the U.S., using both newly manufactured domestic batteries and second-life battery packs from GM electric vehicles.
The partnership represents a pivotal expansion of GM’s battery technology beyond automotive use, building on the companies’ existing collaboration. Redwood Materials recently launched Redwood Energy, a new business focused on rapidly deploying affordable energy storage systems to meet growing power demands, particularly from AI data centers.
“The market for grid-scale batteries isn’t just growing—it’s becoming essential infrastructure,” said Kurt Kelty, GM’s VP of Batteries, Propulsion, and Sustainability. “To meet rising electricity demands, we need domestic, scalable, and economical energy storage solutions. GM batteries can help deliver that.”
Redwood’s Sparks, Nevada facility—home to North America’s largest microgrid and second-life battery project—already uses repurposed GM EV batteries to power AI infrastructure company Crusoe. The new agreement allows Redwood to integrate both second-life packs and GM’s new U.S.-built batteries into its storage systems, delivering a full domestic supply chain from cell to system.
JB Straubel, CEO of Redwood Materials, emphasized the urgency of the energy transition, citing skyrocketing power demands from AI and transportation electrification. “We’re deploying flexible, fast power solutions that strengthen America’s energy and manufacturing independence,” he said.
U.S. electricity consumption is projected to rise significantly, with AI data centers expected to account for 12% of total usage by 2028—up from 4.4% in 2023. GM and Redwood plan to release further details later this year.
