The Elements of Innovation Discovered
The Elements of Innovation Discovered
Metal Tech News - July 16, 2025
Redwood and GM enter into a preliminary agreement to pursue the use of U.S.-built batteries for grid-scale energy storage.
Ultium Cells, a joint venture between GM and LG Energy Solution, will add LFP battery production at its plant in Tennessee.
As AI data centers, electric vehicles, and renewables reshape America's energy landscape, grid-scale battery storage is becoming essential infrastructure. To help meet this rising need, General Motors is partnering with Redwood Materials to manufacture new U.S.-built batteries and repurpose second-life EV packs for stationary storage.
"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 General Motors.
AI data centers are one of the primary drivers of the growing load on electrical grids.
According to the U.S. Department of Energy, AI data centers are on track to triple their share of national electricity usage – from 4.4% in 2023 to 12% by 2028. At the same time, an increasing number of Americans are plugging their vehicles into the electrical grid instead of receiving their transportation energy at the gas pump.
On the supply side, increasing quantities of intermittent solar and wind energy are being fed into the nation's grids.
As power consumption increases, there's an expanding need for energy storage systems that can act to offset power outages and reinforce the grid when demand is high or supply is limited.
"Electricity demand is climbing, and it's only going to accelerate," said Kelty. "To meet that challenge, the U.S. needs energy storage solutions that can be deployed quickly, economically, and made right here at home."
Ultium Cells, a joint venture between GM and LG Energy Solution, will add LFP battery production at its plant in Tennessee.
In June, Redwood Materials launched Redwood Energy, a new business focused on repurposing EV batteries that have reached the end of their road life into fast, low-cost energy-storage systems to meet surging power demand from AI data centers and other applications.
Now, GM has entered into a memorandum of understanding to merge second-life GM EV packs and new U.S.-built batteries with Redwood's grid integration expertise.
"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," said JB Straubel, founder and CEO of Redwood Materials.
Redwood has already installed GM second-life EV batteries at the largest second-life battery development in the world. This battery development near Sparks, Nevada, is part of the largest microgrid in North America, supporting the AI infrastructure company Crusoe.
"We're not just making better cars – we're shaping the future of energy resilience," said Kelty.
While GM has not specified what battery chemistries it is considering for stationary storage, the automaker recently confirmed plans to begin producing lithium-iron phosphate (LFP) batteries at its plant in Tennessee. In addition to more affordable EVs, these lower-cost batteries would be a good fit for its emerging grid battery business.
GM and Redwood plan to unveil further details later this year as they scale battery repurposing to meet the escalating energy needs of an increasingly digitized and electrified America.
With more than 17 years of covering mining, Shane is renowned for his insights and in-depth analysis of mining, mineral exploration, and technology metals.
Reader Comments(0)