Recycled Electric Vehicle Batteries from GM and Redwood Materials to Address Expanding Energy Requirements of Data Centers
General Motors (GM) and Redwood Materials have announced a new collaboration aimed at accelerating the deployment of large-scale energy storage systems as part of the broader clean energy transition. The partnership leverages GM’s advanced battery technology, both newly manufactured in the U.S. and second-life battery packs repurposed from GM electric vehicles (EVs).
Dual-Source Battery Deployment
The partnership will utilize both new GM batteries and second-life EV battery packs, creating a flexible and scalable approach to energy storage. GM’s second-life batteries are already being used in Redwood’s 12MW/63MWh installation in Sparks, Nevada, which is described as the largest second-life battery development in the world and the largest microgrid in North America.
Rapid, Cost-Effective Solutions
Redwood’s recently launched subsidiary, Redwood Energy, specializes in fast, low-cost deployment of energy storage systems that integrate both new and used battery modules. This model is specifically targeted to meet the rapid increase in electricity demand, especially from energy-intensive sectors like AI data centers, which are projected to triple their share of U.S. electricity consumption from 4.4% in 2023 to 12% by 2028.
Enhancing Energy Resilience
The collaboration is framed as a step toward “shaping the future of energy resilience” by providing domestic, U.S.-sourced solutions that can be quickly deployed to reinforce the electrical grid during outages or periods of high demand. This is positioned as critical infrastructure, not just for EVs but for the broader electricity system.
Circular Economy and Sustainability
By repurposing end-of-life EV batteries, the partnership promotes a circular economy, reducing waste and maximizing the utility of battery materials before recycling. Redwood Materials, a leader in North American battery recycling, will collect and assess battery packs, channeling those still in good condition into second-life storage applications.
Broader Impact on Clean Energy Transition
This initiative is significant because it extends the application of EV battery technology beyond transportation, directly supporting the integration of renewable energy sources into the grid. Large-scale, flexible energy storage is crucial for balancing supply and demand as more intermittent renewables like solar and wind come online. By providing both new and second-life storage solutions, GM and Redwood Materials aim to fill a critical gap in the infrastructure needed for a reliable, resilient, and clean energy future.
Next Steps
GM and Redwood Materials plan to announce more detailed plans later in 2025, but the initial focus is clear: to rapidly scale up energy storage capacity using innovative, domestic battery solutions that support both economic and environmental goals. The partnership underscores how automakers and battery specialists can collaborate to address not just mobility challenges, but also the broader energy transition.
The collaboration between General Motors and Redwood Materials is a significant step towards expanding GM's battery technology beyond electric vehicles. Redwood Energy, a new business by Redwood Materials, deploys both used EV packs and new modules into fast, low-cost energy-storage systems built to meet surging power demand from AI data centers and other applications. The new collaboration is focused on deploying energy storage systems to meet surging power demand from various applications, including AI data centers.
- This collaboration between General Motors and Redwood Materials has potential to accelerate the energy transition by deploying large-scale energy storage systems using both new batteries and second-life EV battery packs, particularly in the growing energy-intensive sectors like AI data centers.
- The leveraging of technology from both companies in this partnership will contribute to the environmental-science field by promoting a circular economy, reducing waste, and maximizing the utility of battery materials before they are recycled.
- In addition to supporting the integration of renewable energy sources into the grid, this project aims to provide sustainable finance solutions, as it aims to fill the critical gap in infrastructure needed for a reliable, resilient, and clean energy future.
