GM and Redwood Materials to pursue domestic battery production for energy storage applications
In a significant move to bolster America's energy storage capabilities, General Motors (GM) and Redwood Materials have expanded their collaboration. The partnership, announced through a non-binding memorandum of understanding in July 2025, aims to accelerate the deployment of stationary energy storage systems using both new U.S.-built batteries from GM and second-life battery packs from GM electric vehicles.
The collaboration is set to create a domestic supply chain "from cell to system," emphasizing rapid, economical deployment of American-made energy storage solutions to enhance energy resilience and manufacturing independence in the U.S.
Redwood Materials, founded by JB Straubel, recently launched a new business unit, Redwood Energy, in June 2025. This new venture integrates both new battery modules and used EV battery packs into fast, low-cost energy storage systems tailored for grid-scale use and AI infrastructure applications.
GM is actively repurposing second-life electric vehicle batteries at a major facility—Redwood’s 12 MW / 63 MWh installation in Sparks, Nevada. This move supports the largest second-life battery development and the largest microgrid in North America, backing the AI infrastructure company Crusoe.
As electricity demand climbs and accelerates, the market for grid-scale batteries and backup power is becoming essential infrastructure. Kurt Kelty, VP of batteries, propulsion, and sustainability at GM, highlighted this point, stating that the demand is driven by the surging electricity needs of AI data centers and widespread electrification.
Redwood Materials CEO JB Straubel emphasized the importance of deploying both new and second-life GM batteries for fast, flexible power solutions, which strengthen U.S. energy and manufacturing independence.
The partnership between GM and Redwood Materials represents a significant step toward taking GM's advanced battery technology beyond electric vehicles. In fact, GM plans to mass-produce new lithium-manganese-rich battery chemistry by 2028, further supporting future energy storage innovations.
However, it's important to note that the press release contains forward-looking statements, and actual results may differ materially due to various factors. More details about the collaboration are expected to be announced in 2025.
Sources: [1] Electric Vehicle Web - GM and Redwood Materials Expand Collaboration on Energy Storage Systems [2] Green Car Reports - GM and Redwood Materials Team Up to Boost U.S. Energy Storage Capacity [3] Electrek - GM and Redwood Materials Partner to Boost U.S. Energy Storage Capacity [4] CleanTechnica - GM and Redwood Materials Collaborate to Accelerate Energy Storage Deployment [5] Motor Authority - GM to Mass-Produce New Lithium-Manganese-Rich Battery Chemistry by 2028
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