GM, Redwood Materials to team on U.S.-built batteries for storage
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Gabriella Turrisi/Axios
General Motors is partnering with Redwood Materials, a battery recycler and energy company, to supply U.S.-built batteries for backup energy storage systems.
Why it matters: The companies are responding to the soaring demand for battery storage systems that can offset power outages and reinforce the grid during peak demand.
Between the lines: It's also a hedge against slower-than-expected electric vehicle sales.
- While GM's EV lineup continues to expand, microgrid storage represents another market for its made-in-America batteries.
- The deal expands an existing partnership with Redwood Materials to supply end-of-life EV batteries for recycling or energy storage solutions.
- Already, second-life batteries from GM's EVs are being repurposed to help power the largest microgrid in North America. The Redwood installation in Sparks, Nevada, supports the AI infrastructure company Crusoe.
By adding new EV batteries to the mix, the agreement ensures more feedstocks for Redwood Materials' newest business, Redwood Energy, which seeks to deploy new and used EV packs into energy-storage systems.
The big picture: U.S. electricity demand continues to grow, driven in part by AI data centers.
- The Department of Energy says data centers are on track to triple their share of national electricity usage from 4.4% in 2023 to 12% by 2028.
What they're saying: "The market for grid-scale batteries and backup power isn't just expanding, it's becoming essential infrastructure," Kurt Kelty, vice president of batteries, propulsion, and sustainability at GM, said in a news release.
- "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," added JB Straubel, founder and CEO of Redwood Materials.
What to watch: The companies said they expect to announce more details on their plans later in 2025.
