GM, Redwood Sign MOU Deploying New and Second-Life EV Batteries

In a move poised to accelerate the growth of U.S. energy storage capacity, General Motors has signed a non-binding memorandum of understanding with Redwood Materials to collaborate on the deployment of advanced storage systems using both new and second-life EV batteries.

This partnership deepens GM’s ongoing relationship with Redwood and represents a key step in extending the life and value of EV batteries beyond the vehicle. The collaboration will enable Redwood to integrate both U.S.-manufactured GM battery cells and repurposed battery packs from GM electric vehicles into fast-deploying, cost-effective storage solutions. These systems are designed to help meet surging energy demands across sectors—including AI-powered data centers, which are expected to triple their electricity usage share from 4.4% in 2023 to 12% by 2028.

“The market for grid-scale batteries and backup power isn’t just expanding, it’s becoming essential infrastructure,” said Kurt Kelty, VP of batteries, propulsion, and sustainability at GM. “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.”

Redwood Materials recently launched Redwood Energy, a business line focused specifically on repurposing used EV batteries and incorporating new modules into scalable energy storage systems. With this new memorandum, Redwood gains the ability to use GM’s second-life batteries alongside new U.S.-built battery modules, creating a fully domestic, closed-loop energy storage solution—from cell production to system integration.

“Electricity demand is accelerating at an unprecedented pace, driven by AI and the rapid electrification of everything from transportation to industry,” said JB Straubel, founder and CEO of Redwood Materials. “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.”

One of the most high-profile examples of this approach is already in operation: GM’s second-life EV battery packs are powering Redwood’s 12MW/63MWh microgrid installation in Sparks, Nevada, which currently supports Crusoe, an AI infrastructure firm. The project is not only the world’s largest second-life battery installation but also the largest microgrid in North America.

As demand for reliable, resilient electricity continues to rise—especially with increased AI workloads and grid constraints—GM and Redwood’s collaboration represents a forward-looking strategy to strengthen U.S. energy independence, reduce waste, and give EV batteries a productive second life. The two companies plan to announce additional details later in 2025.

ACEEE Policy Brief For Repurposing EV Batteries

A new policy brief from the American Council for an Energy-Efficient Economy (ACEEE), developed with support from GAIA (a global network promoting zero waste and environmental justice), outlines the opportunities and barriers for repurposing EV batteries. The brief draws from extensive interviews with industry and policy experts and insights from a GAIA-hosted workshop focused on environmental justice and battery repurposing held in April 2025.

EVinfo.net’s Take

At EVinfo.net, we are very excited to see GM and Redwood sign this deal. Repurposing and recycling EV batteries is very important, and one of the many reasons why EVs are the most eco-friendly transportation. In addition to that, EVs are most cost-effective.

For these reasons and many more, mass EV adoption globally (yes, including the slow United States,) is the future. EVs are inEVitable.