General Motors partners with Redwood Materials to transform battery usage

In a significant development for both General Motors and the energy sector, GM has announced a partnership with Redwood Materials, a company focused on battery recycling and energy storage solutions. The collaboration includes the supply of new and used battery cells produced in the U.S., which will be utilized for stationary energy storage systems aimed at supporting the power grid and artificial intelligence data centers. This strategic move comes as electricity demand continues to rise, and the need for reliable grid-scale batteries becomes more critical. The partnership also exemplifies GM's commitment to diversifying the application of its battery technology beyond just electric vehicles. The partnership is a response to changing market dynamics, particularly influenced by recent policies from the Trump Administration that may dampen demand for electric vehicles. In light of this, GM recognizes the necessity to extend the use of its battery production capacity into alternative markets that offer potential growth. By collaborating with Redwood Materials, GM not only aims to boost its revenue from battery technologies but also to contribute to proactive climate efforts through the recycling and repurposing of battery materials. This reflects a broader trend in the industry towards enhancing domestic supply chains and adopting greener technologies. With data centers projected to consume a significant share of U.S. power generation—up to 12% by 2028—the introduction of energy storage solutions from recycled batteries represents a critical innovation within the renewable energy landscape. Redwood Materials, co-founded by former Tesla executive JB Straubel, has already made strides in the field of battery recycling and supplies energy storage packs for various applications. The company processes over 20 gigawatt-hours of used battery cells annually, equating to the needs of approximately 250,000 electric vehicles. As GM continues to invest in battery production and R&D, it has also announced new developments in battery chemistry, including lithium-iron phosphate cells and lithium-manganese-rich cells, which promise to reduce costs for electric truck battery packs. Despite not disclosing specific financial aspects of the newly formed partnership, GM and Redwood indicated plans to provide additional details in the near future, signaling a commitment to transparency and ongoing collaboration in the evolving energy storage sector.