Battery Energy Storage with GM
General Motors is moving beyond car manufacturing by supplying Redwood Materials with both new and second-life EV battery packs for use in large-scale energy storage systems. The companies signed a non-binding memorandum of understanding to develop solutions that combine newly produced U.S.-made batteries with repurposed packs from GM’s electric vehicles.
This collaboration signals GM’s deeper commitment to a circular battery economy. Instead of letting used EV packs go to waste, the company now gives them a second life. At the same time, Redwood Materials gains a reliable stream of supply for its energy storage systems. These systems store renewable energy, stabilize grids, and reduce fossil fuel reliance. As a result, both companies move closer to building a closed-loop supply chain. More importantly, they reduce the environmental impact of battery production and disposal.
First Project Targets AI Hub
Their first project will power a grid-scale storage unit at an AI development hub in California. This collaboration comes as demand for reliable electricity grows, driven in part by energy-intensive AI data centers. By pairing fresh batteries with those retired from GM’s EV fleet, Redwood aims to deliver cost-effective, U.S.-built systems that can be quickly deployed.
The California project highlights a growing trend. AI centers need nonstop, reliable power. At the same time, utilities face pressure to cut emissions. That’s where this battery system fits in. It stores clean energy and releases it when demand spikes. As a result, AI hubs stay online—even during grid stress. Moreover, Redwood and GM prove that battery reuse can support the future of tech and energy.
Strategic Move for GM
GM’s Vice President of Energy storage, Kurt Kelty, emphasized the need for affordable, domestic energy storage options to strengthen the grid and support renewable power. This partnership is also a strategic move for GM as the automaker faces flattening EV sales growth. By diversifying into grid storage, GM can extend the value of its battery investments, support energy independence goals, and develop a new revenue stream in a rapidly growing market.
Supporting the Clean Energy Transition
More broadly, the initiative highlights a trend among automakers to give EV batteries a second life, turning what would otherwise be waste into essential infrastructure for the clean energy transition. As electric vehicles proliferate, these retired battery packs can help stabilize the grid and ensure reliable power even as the world shifts toward renewables.
