General Motors and Redwood Materials have recently announced a groundbreaking collaboration that aims to revolutionize the way EV battery technology is used. By signing a non-binding memorandum of understanding, the two companies are paving the way for the transformation of both new and second-life GM batteries into energy storage systems that will support the increasing electricity demand in the United States.
The partnership between General Motors and Redwood Materials is focused on addressing the surge in power-hungry applications, such as AI data centers, electrified transport, and industrial needs. Kurt Kelty, GM’s VP of batteries, propulsion, and sustainability, emphasized the importance of this collaboration in meeting the growing demand for electricity. He stated, “The market for grid-scale batteries and backup power isn’t just expanding, it’s becoming essential infrastructure. Electricity demand is climbing, and it’s only going to accelerate… GM batteries can play an integral role.”
Redwood Materials recently launched a new venture called Redwood Energy, which aims to repurpose both new and used EV battery packs into fast and cost-effective energy storage systems. With the announcement of this collaboration, Redwood will now have access to second-life batteries from GM EVs and new GM battery modules to create energy storage systems that are manufactured in the United States.
One of the most significant projects resulting from this collaboration is the repurposing of GM’s EV batteries to power the largest second-life battery project in the world. Located in Sparks, Nevada, Redwood’s 12MW/63MWh installation is also the largest microgrid in North America and supports Crusoe, an AI infrastructure company. JB Straubel, Redwood’s founder and CEO, highlighted the importance of utilizing GM’s batteries in energy storage systems, stating, “Electricity demand is accelerating at an unprecedented pace… GM’s second-life EV batteries and new batteries can be deployed in Redwood’s energy storage systems, delivering fast, flexible power solutions.”
The timing of this collaboration couldn’t be more crucial, as AI data centers are projected to triple their share of US electricity use from 4.4% in 2023 to 12% by 2028. This rapid increase in electricity demand underscores the urgent need for scalable and domestic energy storage solutions. GM and Redwood Materials have committed to sharing more details about their plans later this year, promising innovative developments in the field of energy storage technology.
In conclusion, the partnership between General Motors and Redwood Materials represents a significant step forward in the evolution of EV battery technology. By repurposing both new and used batteries into energy storage systems, these companies are not only addressing the increasing electricity demand but also contributing to the sustainability of energy solutions. Stay tuned for more updates on this groundbreaking collaboration.
