Battery recycler Redwood Materials recently announced its intention to use used batteries in second-life storage systems. Now the company has found a well-known partner with General Motors.
General Motors has signed a letter of intent with Redwood Materials and its subsidiary Redwood Energy to deploy stationary energy storage systems that utilise both new GM batteries manufactured in the US and end-of-life battery packs from GM electric vehicles. Although it is still a non-binding agreement, the carmaker describes the planned collaboration as a “significant step toward taking GM’s advanced battery technology beyond EVs and builds on GM and Redwood’s existing collaboration.”
Redwood Materials introduced its own subsidiary for second-life battery storage, Redwood Energy, at the end of June. The company is regarded as the market leader in battery recycling in North America and has established corresponding structures there to collect not only production rejects, but also used batteries from partners, for example, from GM’s battery joint venture Ultium Cells. However, many of the batteries collected via the Redwood system are still in good condition – too good to be recycled directly. With Redwood Energy, the recycler wants to utilise these good batteries even further and use them as second-life storage units, primarily in the energy supply and as a kind of emergency power generator.
In fact, Redwood Energy is already using decommissioned GM batteries for its first project. Directly at the launch of the new subsidiary, Redwood had already presented a storage system with 12 MW output and 63 MWh capacity, which was built in Nevada at a modular data centre of the AI infrastructure company Crusoe. As General Motors and Redwood have now confirmed, the battery packs for this second-life storage system come from GM vehicles.
However, the two companies have not yet announced any concrete further projects, as this is currently still a non-binding declaration of intent. However, an expansion of activities is planned: According to the announcement, further details on the joint plans are expected to be announced in the course of 2025.
“The market for grid-scale batteries and backup power isn’t just expanding, it’s becoming essential infrastructure,” stated Kurt Kelty, Vice President of Batteries, Powertrain and Sustainability at GM. “Electricity demand is climbing, and it’s only going to accelerate. To meet that challenge, the U.S. needs energy storage solutions that can be deployed quickly, economically, and made right here at home. GM batteries can play an integral role. We’re not just making better cars – we’re shaping the future of energy resilience.”
“Electricity demand is accelerating at an unprecedented pace, driven by AI and the rapid electrification of everything from transportation to industry,” said JB Straubel, founder and CEO of Redwood Materials. “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.”
gm.com, redwoodmaterials.com
