Photo by Hilary Halliwell on Pexels

General Motors (GM) and Redwood Materials are deepening their collaboration to create AI-ready energy storage solutions using both new and recycled electric vehicle (EV) batteries. The partnership will focus on addressing the rapidly growing demand for grid-scale batteries driven by the expansion of AI development centers and data centers, along with the need to balance the intermittency of renewable energy sources. Redwood Materials will initially deploy a storage system to power a California-based AI development hub.

This initiative builds upon GM’s established battery recycling program with Redwood, using manufacturing scrap and end-of-life EV batteries to create a sustainable energy supply chain. The resulting energy storage systems will not only stabilize the grid but also provide crucial backup power, mitigating the increasing electricity demands associated with AI infrastructure and the production of EVs, batteries, solar panels, and semiconductors.

GM underscored the strategic importance of domestically produced energy storage solutions to meet these escalating power requirements. Redwood Materials, founded by former Tesla CTO JB Straubel, already operates a large-scale battery recycling operation, processing batteries from companies like Ford, Toyota, and Amazon. This partnership marks a significant stride towards a more sustainable and reliable energy future, powered by AI and driven by circular economy principles.