General Motors has entered a strategic partnership with battery recycling and energy-storage firm Redwood Materials to develop grid-scale energy storage systems in the United States. The agreement builds on an existing relationship, now extending its scope to include both new GM-manufactured batteries and second-life EV packs for backup and microgrid applications.
Under a non-binding memorandum of understanding, the collaboration will see GM supplying fresh battery modules and retired EV batteries to Redwood’s newly launched Redwood Energy division. The initial project includes the largest second-life battery microgrid in North America—a 12 MW/63 MWh installation in Sparks, Nevada, that supports AI data centre operations.
Kurt Kelty, VP of batteries, propulsion and sustainability at GM, said the partnership addresses the “surging demand” for resilient energy infrastructure—especially with growing electricity usage from AI and electrification trends—and supports domestic manufacturing and grid stability. JB Straubel, CEO of Redwood, echoed this, noting second-life and new batteries offer “fast, flexible power solutions” that reduce import reliance and strengthen manufacturing independence.
Experts note such repurposed EV packs can retain up to 80% capacity after vehicle use, making them ideal for grid applications, with a service life of 10–20 years—thus improving battery economics and sustainability. The initiative illustrates a circular-materials strategy where retired EV batteries extend their usefulness by stabilizing grids, especially during peak demand and outages.
The collaboration also aligns with government-backed clean-energy efforts like the Inflation Reduction Act. Redwood and GM plan U.S.-based production to support energy storage deployment for utilities, businesses, and data centres—sectors that need reliable power infrastructure.
Looking ahead, GM and Redwood expect to share more details later in 2025, including planned expansion of storage systems across new markets. With the microgrid in Nevada already operational, the partnership marks a significant step beyond EVs into resilient energy infrastructure.
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