GM and Redwood Materials Repurpose EV Batteries for Energy Storage Systems

A Major Move Toward Domestic Energy Storage Resilience

General Motors (GM) and Redwood Materials have launched a key partnership to repurpose electric vehicle (EV) batteries. They signed a memorandum of understanding to develop scalable energy storage systems using GM’s new and used batteries. The goal is to meet rising U.S. electricity demands with grid-scale battery storage made from domestic materials.

This collaboration builds on their existing relationship and expands GM’s battery technology beyond electric vehicles.
Kurt Kelty, GM’s Vice President of Batteries, highlighted the urgent need for fast and local energy solutions.
He noted that AI and electrification are rapidly increasing electricity consumption across the U.S.

Kelty emphasized that GM’s batteries, built in the U.S., can support both EVs and national energy infrastructure.

Redwood Energy and the Role of AI in Power Demand

Redwood Materials, headquartered in Carson City, Nevada, recently launched Redwood Energy, a new arm dedicated to deploying used EV battery packs into cost-effective energy storage systems. These systems are specifically tailored to meet the surging electricity demand from AI-driven data centers and industrial sectors.

One of the key projects under this collaboration is Redwood’s 12-megawatt/63-megawatt-hour installation in Sparks, Nevada. This microgrid, which supports AI infrastructure firm Crusoe, is currently the largest of its kind in North America. Redwood CEO JB Straubel highlighted that both GM’s new and second-life batteries are integral to fast, flexible energy storage—a foundation for enhancing America’s energy independence and manufacturing resilience.

Focus Keyphrase: GM and Redwood Materials Repurpose EV Batteries

The decision to repurpose EV batteries comes at a time when U.S. electricity demand is projected to surge dramatically. The Department of Energy forecasts that AI data centers alone will account for 12% of the nation’s electricity usage by 2028, up from just 4.4% in 2023. As a result, the pressure to develop robust energy storage systems that can support the grid during peak demand or outages is mounting.

By leveraging both GM’s U.S.-built battery modules and Redwood’s system integration capabilities, the partnership promises a fully domestic solution—from cell manufacturing to energy deployment. This aligns with national energy policy goals aimed at reducing dependency on foreign supply chains while reinforcing grid resilience.

SuperMetalPrice Commentary:

The GM-Redwood partnership exemplifies a smart, strategic pivot in the U.S. battery value chain. As AI-driven power consumption accelerates, battery repurposing offers a cost-effective and sustainable solution to grid instability. For metals markets, this signals rising demand not only for primary materials like lithium and nickel but also for efficient recycling and repurposing streams. Investors and supply chain stakeholders should watch closely—this collaboration could set a blueprint for global energy storage systems built on recycled and second-life battery materials.