GM & Redwood Materials to Repurpose EV Batteries for Energy Storage

General Motors has signed a non-binding memorandum of understanding (MoU) with Redwood Materials designed to accelerate deployment of energy storage systems using both new US-manufactured EV batteries from GM and second-life battery packs from GM EVs. This collaboration marks a significant step toward taking GM’s advanced battery technology beyond EVs.

The MoU builds on GM and Redwood's existing collaboration, delivering a US solution from cell to system.

In June, 2025, 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. 

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.

Kurt Kelty, VP of batteries, propulsion, and sustainability at GM, says: “The market for grid-scale batteries and backup power isn’t just expanding, it’s becoming essential infrastructure. 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.”

JB Straubel, founder and CEO of Redwood Materials, adds: “Electricity demand is accelerating at an unprecedented pace, driven by AI and the rapid electrification of everything from transportation to industry. 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.”

GM and Redwood Materials expect to announce more details on their plans later in 2025.