GM’s used EV batteries will power grid storage as AI electricity demand triples by 2028

General Motors and Redwood Materials have signed a non-binding memorandum of understanding to repurpose both new and second-life GM EV batteries into energy storage systems for the US electrical grid. The collaboration addresses surging electricity demand from AI data centers, electrified transport, and industrial applications, with AI facilities alone expected to triple their share of US electricity use from 4.4% in 2023 to 12% by 2028.

What you should know: This partnership leverages Redwood’s new venture, Redwood Energy, which launched in June to transform EV battery packs into grid-scale energy storage solutions.

• GM’s repurposed EV batteries are already powering the world’s largest second-life battery project—a 12MW/63MWh installation in Sparks, Nevada, that also serves as North America’s largest microgrid.
• The Nevada facility currently supports Crusoe, an AI infrastructure company, demonstrating real-world application of the technology.

Why this matters: The timing aligns with unprecedented growth in electricity demand, particularly from power-hungry AI data centers that require scalable, domestic energy storage solutions.

• “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.”

How it works: Redwood Energy repurposes both used EV battery packs and new GM battery modules into fast and cost-effective energy storage systems built in the US.

• The approach extends the useful life of EV batteries beyond their automotive applications, creating a circular economy for battery 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,” explained JB Straubel, Redwood’s founder and CEO.

What’s next: GM and Redwood Materials plan to share additional details about their collaboration later this year, as the partnership moves from memorandum to implementation phase.