American automotive giant GM, along with Redwood Materials, intends to establish a battery storage system within the United States
In a groundbreaking development, General Motors (GM) and Redwood Materials have announced the launch of the world's largest second-life battery system, designed to meet the escalating power demands of Artificial Intelligence (AI) data centers and other applications.
The collaboration, which is a continuation of an ongoing partnership, involves the repurposing of second-life battery packs from GM's electric vehicles (EVs) and the production of new U.S.-manufactured batteries by GM. The aim is to co-develop energy storage solutions for both new and used electric vehicle batteries [1][2][3].
Redwood Materials, in June 2025, established the Redwood Energy business unit, which focuses on deploying these second-life EV batteries and new battery modules into fast, low-cost stationary energy storage systems. These systems directly address the growing need for grid-scale and backup power infrastructure, particularly important as electricity demand rises sharply due to AI infrastructure requirements [1][2].
One of the most significant applications of this collaboration is the 12MW/63MWh microgrid in Sparks, Nevada, which is powered by repurposed GM batteries. This system supports the operations of Crusoe Energy’s AI data center [1][4].
By repurposing second-life EV battery packs into stationary storage systems, combining them with newly manufactured GM batteries for higher capacity and reliability, and deploying these systems to power microgrids supporting AI infrastructure, GM and Redwood Materials are contributing to AI data center energy needs. They are also delivering fast, economical, domestically built energy storage solutions that enhance grid resilience and sustainability [1][2][4].
This initiative underscores the strategic value of extending the life cycle of EV batteries by repurposing them into stationary energy storage solutions essential for energy resilience and reducing reliance on newly mined raw materials. It also aligns with domestic manufacturing goals by delivering a "cell to system" energy storage solution made in the U.S., leveraging GM’s advanced battery technology and Redwood’s recycling and integration expertise [1][2][3].
The World's Largest Second-Life Battery System is currently being used in a pilot project in Sparks, Nevada. The Redwood Energy business unit also manufactures new modules for stationary energy storage solutions. However, the location of the battery system beyond being in Sparks, Nevada, remains unspecified.
Sources: [1] General Motors Newsroom. (2025). GM and Redwood Materials to Collaborate on Energy Storage Solutions. Retrieved from https://www.gm.com/news/press/2025/06/gm-and-redwood-materials-to-collaborate-on-energy-storage-solutions
[2] Redwood Materials. (2025). Redwood Energy Launches to Repurpose Electric Vehicle Batteries. Retrieved from https://www.redwoodmaterials.com/news/redwood-energy-launches-to-repurpose-electric-vehicle-batteries
[3] Crusoe Energy Systems. (2025). Crusoe Energy Systems and General Motors Announce World's Largest Second-Life Battery System. Retrieved from https://www.crusoeenergy.com/news/crusoe-energy-systems-and-general-motors-announce-worlds-largest-second-life-battery-system
[4] TechCrunch. (2025). General Motors and Redwood Materials team up on second-life battery system for AI data centers. Retrieved from https://techcrunch.com/2025/06/01/general-motors-and-redwood-materials-team-up-on-second-life-battery-system-for-ai-data-centers/
Technology plays a crucial role in this collaboration, as GM and Redwood Materials aim to co-develop energy storage solutions using both new and used electric vehicle batteries. The repurposed GM batteries are combined with new U.S.-manufactured batteries to power microgrids supporting AI infrastructure, demonstrating the technological advancements in energy storage and the potential impact on AI data center energy needs.
