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Batteries

General Motors Partners with Redwood Materials for Battery Supply and Grid Storage

Strategic Insights

— 1 min read

General Motors (GM) is strengthening its presence in the battery and energy storage market by partnering with Redwood Materials, a leading battery recycler and energy company. The collaboration aims to supply U.S.-built batteries for backup energy storage systems, catering to the growing demand for grid reinforcement and microgrid storage. This move not only responds to the need for reliable energy storage but also serves as a strategic hedge against potential slow-downs in electric vehicle (EV) sales.

Key Takeaways:

  • The partnership between GM and Redwood Materials will provide U.S.-built batteries for backup energy storage systems, targeting the growing demand for grid reinforcement and microgrid storage.
  • The deal expands an existing partnership to supply end-of-life EV batteries for recycling or energy storage solutions, with second-life batteries from GM's EVs already powering the largest microgrid in North America.
  • Redwood Materials' new business, Redwood Energy, will deploy new and used EV packs into energy-storage systems, utilizing the additional feedstocks from GM.
  • U.S. electricity demand is expected to grow, driven by AI data centers, with data centers potentially tripling their share of national electricity usage from 4.4% in 2023 to 12% by 2028, according to the Department of Energy.
  • GM's collaboration with Redwood Materials ensures more feedstocks for Redwood Energy's energy storage systems, delivering fast and flexible power solutions and enhancing America's energy and manufacturing independence.

Statistics:

  • U.S. electricity demand is expected to grow, with data centers potentially tripling their share of national electricity usage from 4.4% in 2023 to 12% by 2028 (Department of Energy).
  • The market for grid-scale batteries and backup power is becoming essential infrastructure, with fast and flexible power solutions delivered by Redwood Materials' energy storage systems.
  • Second-life EV batteries from GM's EVs are already being repurposed to power the largest microgrid in North America.
  • GM's partnership with Redwood Materials will provide U.S.-built batteries for backup energy storage systems, strengthening America's energy and manufacturing independence.

Sources:

  • "DOE Releases New Report Evaluating Increase in Electricity Demand from Data Centers" (Department of Energy, [no date])
  • Quote from Kurt Kelty, Vice President of Batteries, Propulsion, and Sustainability at GM, in a news release by General Motors (no date)
  • Quote from JB Straubel, Founder and CEO of Redwood Materials, in a news release by General Motors (no date)

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