Redwood has signed a non-binding memorandum of understanding with GM meant to accelerate deployment of energy storage systems using both new U.S.-manufactured batteries from GM and second-life battery packs from GM electric vehicles.
This collaboration marks a significant step toward taking GM’s advanced battery technology beyond EVs and builds on GM and Redwood’s existing collaboration.
“The market for grid-scale batteries and backup power isn’t just expanding, it’s becoming essential infrastructure,” said Kurt Kelty, vice president of batteries, propulsion and sustainability at 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, Redwood Materials launched Redwood Energy, a new business that deploys both used EV packs and new modules into fast, low-cost energy-storage systems built to meet surging power demand from AI data centers and other applications. The memorandum enables Redwood to pair that integration expertise with both second-life GM EV packs and U.S.-built batteries, delivering a domestic solution from cell to system.
Already, GM second-life electric vehicle batteries are being repurposed to help power the largest second-life battery development in the world and the largest microgrid in North America, at Redwood’s 12MW/63MWh installation in Sparks, Nevada, supporting the AI infrastructure company Crusoe.
“Electricity demand is accelerating at an unprecedented pace, driven by AI and the rapid electrification of everything from transportation to industry,” said JB Straubel, founder and chief executive officer of Redwood Materials. “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.”
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. 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.
Published December 2025
