General Motors (GM) has signed a non-binding memorandum of understanding with Redwood Materials to boost collaboration on battery energy storage systems (BESS).
Under the collaboration, GM will use second-life batteries from its EV range to develop new BESS units with Redwood Energy, while also manufacturing new batteries for this purpose.
This announcement comes just weeks after Redwood Materials launched Redwood Energy, its new arm dedicated to repurposing second-life EV batteries for use in BESS assets. Last month, it was announced that Redwood Energy had entered into a strategic partnership with Crusoe to develop a microgrid powered by large-scale solar PV installations and stored in second-life EV batteries in order to meet the energy demand from Crusoe’s AI data centres. GM’s second-life EV batteries are already being used at Redwood’s 12MW/63MWh BESS in Sparks, Nevada, supporting Crusoe’s efforts there.
“The market for grid-scale batteries and backup power isn’t just expanding, it’s becoming essential infrastructure,” said Kurt Kelty, VP of batteries, propulsion, and sustainability at GM. He added that in the face of growing energy demand, “the U.S. needs energy storage solutions that can be deployed quickly, economically, and made right here at home”.
JB Straubel, founder and CEO of Redwood Materials, agreed, and added: “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.”
Redwood has previously stated that it receives over 20GWh of EV batteries for recycling each year, an amount equivalent to the battery capacity of around a quarter of a million EVs.
Fellow energy storage firm Moment Energy, which also repurposes second-life EV batteries into BESS units, recently announced that it has reached full production of its new manufacturing hub in Vancouver, Canada, with which it aims to meet 5.6GWh of demand across North America. Meanwhile in the UK, startup Allye Energy is also working to repurpose EV batteries into BESS units, having developed the MegaMAX range of “drop and go” systems that can utilise EV batteries with mixed chemistries.
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