General Motors enters the energy sector by partnering with Redwood Materials to utilize second-life electric vehicle batteries for energy storage solutions. The collaboration focuses on supplying energy for AI data centers, reflecting a growing need for grid-scale battery solutions as electricity demands increase. GM aims to recycle its EV batteries, providing essential infrastructure to meet the accelerating electricity demand while promoting domestic manufacturing. The project highlights the integration of automotive technology into energy storage, particularly through innovations like Redwood's Nevada microgrid installation powered by GM batteries.
"The market for grid-scale batteries and backup power isn't just expanding; it's becoming essential infrastructure," said Kurt Kelty, vice president of battery, propulsion, and sustainability at GM. "Electricity demand is climbing, and it's only going to accelerate. To meet that challenge, the US needs energy storage solutions that can be deployed quickly, economically, and made right here at home. GM batteries can play an integral role."
When GM electric vehicle batteries come to the end of their useful lives in cars, the company gives them a second life through a recycling deal with Redwood. The agreement includes new US-manufactured batteries from GM and second-life battery packs from GM electric vehicles.
The joint effort, announced just weeks after Redwood launched its new energy storage arm, Redwood Energy, is already bearing fruit. GM EV batteries are helping power a new Redwood microgrid in Nevada, the largest second-life battery installation in the world, according to the startup.
As AI data centers push electricity demand to new highs, the need for grid-scale energy storage has become urgent. GM is entering the power business through a new agreement with Redwood Materials, a startup run by Tesla cofounder JB Straubel.
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