General Motors is branching out beyond its core—teaming up with Redwood Materials to repurpose EV batteries for energy storage systems that will support data centers and the grid.
This agreement marks a shift toward using both new and second‑life GM-made batteries in stationary storage setups.
Redwood’s new arm, Redwood Energy, recently rolled out a 12 MW / 63 MWh microgrid at its Nevada facility powered by retired EV battery packs.
The installation already supports a 2,000-GPU AI data center operated by Crusoe Energy—the largest second-life battery deployment globally.
Under their new memorandum with GM, both new U.S.-manufactured batteries and repurposed units will be integrated into future systems. GM aims for energy solutions that are made domestically and scalable, positioning batteries as key infrastructure, not just automotive components.
Redwood co-founder JB Straubel says it’s not just recycling—these batteries, though no longer suitable for EVs, still have 50–80% of life left and work well for energy storage. Most of them are collected and tested, and only the strongest are integrated into storage arrays.
GM’s VP of batteries, Kurt Kelty, adds: “Grid storage isn’t just growing, it’s becoming essential. GM batteries play a central role in U.S. energy resilience.”
With global power demand rising, especially from AI data centers projected to reach 12% of U.S. electricity use by 2028, this partnership aligns with broader goals which includes; clean energy, domestic production, industry innovation, etc. More detailed plans and deployment updates are expected later in 2025.