SHERIDAN, WYOMING – July 17, 2025 – General Motors and Redwood Materials are taking a bold step toward reshaping the future of energy storage by joining forces to advance the use of U.S.-built batteries for large-scale energy storage solutions. The two companies have signed a non-binding memorandum of understanding, aiming to accelerate the deployment of energy storage systems that leverage both new GM-manufactured batteries and second-life battery packs from GM electric vehicles.
This forward-thinking collaboration goes beyond the automotive industry, tapping into the rising demand for reliable, domestically produced energy storage solutions.
Meeting America’s Soaring Energy Needs
Kurt Kelty, GM’s Vice President of Batteries, Propulsion, and Sustainability, highlighted the growing importance of grid-scale energy storage. “The market for grid-scale batteries and backup power isn’t just expanding, it’s becoming essential infrastructure,” he said. “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.”
As electricity usage continues to rise—especially with the AI boom and the electrification of industries—energy storage systems are critical for maintaining grid stability and preventing power outages during peak demand.
Redwood Energy: A New Chapter in Power Solutions
In June, Redwood Materials launched Redwood Energy, a venture dedicated to building fast, cost-effective energy storage systems using both used EV battery packs and new battery modules. These systems are specifically designed to meet the surging energy needs of AI data centers and other high-demand applications.
The new memorandum allows Redwood to expand this expertise by integrating both second-life GM batteries and newly built U.S. batteries into its storage solutions. This creates a seamless, domestically sourced supply chain—from battery cell production to fully integrated storage systems.
Repurposing Batteries for a Stronger Energy Future
GM’s second-life batteries are already making a difference. They are currently part of the world’s largest second-life battery project and the largest microgrid in North America: a 12MW/63MWh installation at Redwood’s facility in Sparks, Nevada. This setup supports Crusoe, an AI infrastructure company, showcasing the practical impact of repurposed electric vehicle batteries.
JB Straubel, Founder and CEO of Redwood Materials, emphasized the urgency of this initiative. “Electricity demand is accelerating at an unprecedented pace, driven by AI and the rapid electrification of everything from transportation to industry,” he stated. “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.”
Looking Ahead to a Sustainable Energy Landscape
With U.S. electricity demand expected to surge—especially as AI data centers are projected to triple their share of national electricity use by 2028—the need for flexible, reliable energy storage solutions has never been greater. These systems are set to play a crucial role in offsetting power outages, balancing the grid, and securing the nation’s energy future.
GM and Redwood Materials plan to share more details about their partnership later in 2025, signaling continued momentum in shaping a sustainable, resilient energy infrastructure.
Learn more at gm.com and redwoodmaterials.com.