GM and Redwood Materials Partner to Repurpose EV Batteries for Energy Storage

GM and Redwood teaming up to make batteries for energy storage

Andrew J. Hawkins is transportation editor with 10+ years of experience who covers EVs, public transportation, and aviation. His work has appeared in The New York Daily News and City & State. General Motors and Redwood Materials are joining forces yet again, this time with the intent to build energy storage units made out of recycled EV batteries. The two companies signed a non-binding memorandum of understanding to build energy storage out of US-manufactured batteries, as well as "second-life" EV packs from GM's vehicles. The announcement comes on the heels of Redwood's decision to move more aggressively into the energy storage business with the creation of a new division. The company's first project will be building a storage system for an AI development center in California. Battery storage systems play a crucial role in balancing energy for the grid. These systems can store energy from a variety of sources, including renewables like wind and solar, releasing it when needed, which helps save power during periods of low demand. The rise of AI is putting increasing pressure on the grid, in the US and globally. The steepest rise in global electricity demand is coming from new data centers in the US and China, as well as the manufacturing of electric vehicles, batteries, solar panels, and semiconductors. GM has a preexisting partnership with Redwood to recycle scrap from its battery manufacturing facilities in Warren, Ohio, and Spring Hill, Tennessee. The automaker says this new deal will help power its ambitions to expand beyond EV batteries and into grid management and energy storage. GM has its own energy division that sells power banks, charging equipment, solar panels, and management software to residential and commercial customers. "The market for grid-scale batteries and backup power isn't just expanding, it's becoming essential infrastructure," said Kurt Kelty, GM's VP of batteries, propulsion, and sustainability, in a statement. "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." Redwood Materials was founded in 2017 by Tesla's former chief technologist JB Straubel. In addition to breaking down scrap from Tesla's battery-making process with Panasonic, Redwood recycles batteries from Ford, Toyota, Nissan, Specialized, Amazon, Lyft, Rad Power Bikes, Lime, stationary storage facilities, and others. The company also produces cathodes at a facility in Nevada, and eventually at its under-construction site in South Carolina.

GM, Redwood Materials to team on U.S.-built batteries for storage

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.

General Motors Has Big Plans For Your Old EV Battery

This provides scalable, cost-effective energy storage while also reducing waste produced by old or totaled EVs. Ever wonder what happens to an EV battery pack when the car dies? I'd like to think it goes to battery heaven -- after all, I hear dogs have their own version. But the reality is a bit more grim at the moment, with any number of possibilities from ending up in a landfill to being recycled into a slurry of processed minerals called a black mass. Thankfully, General Motors and Redwood Materials have a plan: give those cells a second life powering literally anything and everything else. The duo announced a new partnership on Wednesday that would breathe new life into old EV batteries. Essentially, the pair would work together to feed Redwood a steady stream of "retired" battery packs for repurposing to keep EVs from becoming the next big contributor to the e-waste crisis. You probably know GM already, but not everyone has heard of Redwood. For those who haven't, you've probably at least heard of Tesla. JB Straubel, the CEO and founder of Redwood Materials, was former CTO of Tesla (and also its fifth ever employee). Straubel's purpose in founding Redwood was to create a closed-loop in the battery supply chain, allowing automakers (and other companies that need energy storage) to utilize the critical materials that have already been harvested for their cars. Redwood launched Redwood Energy in June, which expands on the company's original purpose in order to deploy EV battery packs -- both new and recycled ones -- into modules for low-cost energy storage systems. GM might supply Redwood with a new battery pack, sure. But it's also planning on dropping plenty of old packs on the company's doorstep, too. See, EV batteries could be retired for a number of reasons. They could have a bad cell, or maybe they've dipped below the optimal roadworthy range of 70-80% capacity. That isn't to say that these batteries still don't hold a ton of juice, so grinding them up into a coarse powder or dumping them in a junkyard is basically like throwing away cash. Redwood also happens to have a network of sources to get these packs in addition to directly from GM. It might be sent to the company directly from a dealership as a recycled pack, or it could be reclaimed from an automotive dismantler. There's also the complex web of national collection and logistic services that source these packs for Redwood since EVs all end their serviceable lives in different ways. This partnership does two things that GM -- and, let's be real, the entire auto industry -- needs right now: First, it helps GM look eco-smart in front of all its peers and EV nay-sayers. Second, it helps deal with the impending tidal wave of first-generation EV batteries that will soon start coming back to automakers as tech improves and folks start turning in their old Chevy Bolts and Teslas for new BEVs with gobs of range. And to really hammer home Redwood's mission, many of these batteries will be able to be reused before they need to be recycled. In fact, batteries from GM's partnership with Redwood are already powering a 63 megawatt-hour battery microgrid in Sparks, Nevada -- that's the largest microgrid in all of North America. It's being used to support an AI infrastructure company helping to back OpenAI. "Electricity demand is accelerating at an unprecedented pace, driven by AI and the rapid electrification of everything from transportation to industry," said Straubel in GM's press 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." When you think about it Redwood is really helping to create another domestic battery ecosystem that's sustainable and less dependent on mining new minerals. That means less worry about how these materials were sourced and ensuring that they're obtained ethically. It also gives the opportunity for cheaper products all around by reusing batteries before having to re-process them using energy-intensive hydrometallurgy and pyrometallurgy recycling methods. So the next time that someone tells you that EVs are wasteful because the batteries just get thrown out, just smile and nod while imagining a big pile of GM-branded battery packs humming away in a substation somewhere preventing the grid collapse. Sometimes even the future is built from old parts.

Redwood is repurposing GM's EV batteries into energy storage

General Motors and Redwood Materials are joining forces to take EV battery tech beyond the road and onto the grid. The two companies just signed a non-binding memorandum of understanding that sets the stage for turning both new and second-life GM batteries into energy storage systems to support the US's rising electricity demand. The collaboration aims to help the grid keep up with the surge in power-hungry applications, from AI data centers to electrified transport and industry. "The market for grid-scale batteries and backup power isn't just expanding, it's becoming essential infrastructure," said Kurt Kelty, GM's VP of batteries, propulsion, and sustainability. "Electricity demand is climbing, and it's only going to accelerate... GM batteries can play an integral role." Redwood launched a new venture in June called Redwood Energy that repurposes both new and used EV battery packs into fast and cost-effective energy storage systems. Today's announcement allows Redwood to use second-life batteries from GM EVs and new GM battery modules to create US-built energy storage systems. This isn't just a future plan - it's already happening. GM's repurposed EV batteries are currently powering the biggest second-life battery project in the world. Located in Sparks, Nevada, Redwood's 12MW/63MWh installation is also the largest microgrid in North America and supports Crusoe, an AI infrastructure company. "Electricity demand is accelerating at an unprecedented pace," said JB Straubel, Redwood's founder and CEO. "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 the timing couldn't be better. AI data centers alone are expected to triple their share of US electricity use, from 4.4% in 2023 to 12% by 2028. That's driving the urgent need for scalable, domestic energy storage. GM and Redwood Materials say they'll share more details on their plans later this year. Read more: Arizona brings a huge grid battery online ahead of peak demand The 30% federal solar tax credit is ending this year. If you've ever considered going solar, now's the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it's free to use, and you won't get sales calls until you select an installer and share your phone number with them.

GM inks deal to recycle EV batteries to power AI

Learn about the rich history and notable innovations of General Motors, from its founding in 1908 to its leadership in electric and autonomous vehicle technology. * GM started working with Redwood Materials last year to recycle production scrap from two Ultium Cells battery plants, in Warren, Ohio and Spring Hill, Tennessee. Used batteries from General Motors vehicles may soon power artificial intelligence centers. The Detroit automaker signed a "non-binding memorandum of understanding" to deploy new and used electric vehicle batteries for storage systems that power a Nevada microgrid, which, in turn, powers a modular data center for AI infrastructure company Crusoe, the company said last Wednesday. GM defines the terms of the deal as a business plan in place that outlines the automaker's intentions to work together moving forward on the deployment of energy storage systems meant to strengthen American grid resiliency. This expands on an existing partnership with Redwood Materials, which the companies announced in May 2024 to recycle production scrap from two Ultium Cells battery plants, in Warren, Ohio and Spring Hill, Tennessee. Ultium Cells is the joint battery cell manufacturing venture between GM and LG Energy Solution. These GM EV batteries are already powering Redwood's microgrid in Nevada supporting AI infrastructure company Crusoe. That installation can deliver 12 megawatts of power at any instant, and the total capacity of the site is 63-megawatt hours, GM said. "The market for grid-scale batteries and backup power isn't just expanding, it's becoming essential infrastructure," said Kurt Kelty, vice president of batteries, propulsion 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." The business of recycling batteries The news comes on the heels of several announcements GM has made regarding investment in electric vehicle propulsion. Earlier this week, GM and LG said they would scale production of lithium iron phosphate battery cells, a lower-cost alternative to the nickel-rich batteries the companies also produce together, at their Ultium facility in Tennessee. Redwood Materials, founded and run by former Tesla chief technology officer JB Straubel, also partners with Toyota Motor Co., Ford Motor Co., Volvo, Volkswagen and Audi to extract lithium, nickel and cobalt from "end-of-life" battery packs. Redwood Materials then remanufactures those materials into cathodes, according to its website. "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," Straubel said in a statement. GM's contract with Redwood allows it to enter a new business much like its partner LG Energy Solution in the race to build batteries that support the U.S. electric grid and fuel the growing demand of artificial intelligence. The South Korean battery maker, the largest in the country, completed expansion of its Holland, Michigan, facility last month after investing over $1.4 billion to manufacture batteries for storage systems. The plant, operational since 2012, also produces automotive vehicle batteries for partners, including General Motors, Honda and Hyundai Motors. Still, the collaboration with Redwood Materials to deploy energy storage systems does not put it in direct competition with its joint venture partner. Rather, the expansion requires using new GM-manufactured battery packs made from cells from Ultium Cells JV with LG Energy Solution, and second-life GM EV batteries with Redwood Materials integrating GM battery technology into battery energy storage systems, according to a company spokesman. Striking a deal Partnerships between automakers and battery recyclers are a growing trend in North America, but are still in their infancy and it remains to be seen how well the business model will work, according to Tony Flanagan, a partner and managing director in the automotive and industrial practice at AlixPartners. The investment required to get a battery recycling operation up and running is substantial, and the revenue stream for U.S. automakers is difficult to project due to the mercurial changes facing the EV environment in North America. "Europe and China seem to have better business models for these partnerships as we see the global supply of EV batteries for recycling on track to take off in 2028, driven largely by growth" outside the United States, he said, adding that battery recycling capacity is on track to be about three times what it is today by 2030, with China representing approximately 70% of the market and the U.S. just 10%. The U.S. Department of Energy said last December in its 2024 Report on U.S. Data Center Energy Use that data center load growth tripled over the past decade and is projected to double or triple again by 2028. Meanwhile, Redwood Materials anticipates more than 100,000 EVs will require recycling by the end of 2025. The lifespan of an EV battery Just because a battery is no longer useful in an electric vehicle does not mean it's useless, according to Liz Najman, director of market insights at EV research firm and shopping resource Recurrent. In 2025, the new electric vehicle will produce batteries with an average of 93 kilowatts of charge. Depending on the manufacturer, a battery is considered end-of-life in an electric vehicle, when around 70 kilowatt hours remain. "When you lose that 30% in battery capacity, you lose around 30%, plus or minus, of range. For a lot of people, that's no longer satisfactory," she told the Free Press. "You're not just losing the capacity of the battery; you're losing the rate of energy delivery -- which is power." Even for vehicles on the road for over five years, decommissioned electric vehicle batteries could last another 10 to 20 years before officially expiring -- but the technology hasn't been around long enough to specify accurate lifespans, Najman said. Microgrids like the one GM EV batteries will power are more resilient and cost-effective than a traditional energy grid, Najman said, and are exempt from the processes of a state-regulated utility. "We don't actually know -- modern lithium-ion batteries have not been around and in use for that long," she said. "We don't know how long these vehicle batteries will continue to be useful, but it's longer than people expect." Jackie Charniga covers General Motors for the Free Press. Reach her at [email protected].