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GM teams up with Redwood Materials to power data centers with EV batteries
GM is partnering with Redwood Materials to repurpose EV batteries for stationary energy storage, enhancing power supply for a data center powered by solar energy. The collaboration aims to expand Redwood's energy storage division, with plans to deploy 20 GWh of storage by 2028, amidst a growing demand for energy storage solutions.
Key points
- GM sends both new and old EV batteries to Redwood Materials for recycling.
- Redwood repurposes these batteries into a 12 MW microgrid at its Nevada facility.
- The microgrid supplies electricity to a nearby data center owned by Crusoe, using solar energy.
- Redwood's process has shown that many battery cells retain significant life, allowing them to be reused instead of recycled.
- The partnership could lead to significant growth in Redwood's energy storage business, which could outpace its recycling operations.
- Redwood is currently responsible for recovering about 70% of used batteries in the U.S. and plans to deploy 20 GWh of storage by 2028.
- GM’s decision to provide new batteries helps mitigate risks associated with fluctuating EV sales.
Why it matters
- The partnership fits into the broader trend of utilizing second-life batteries to support renewable energy storage.
- Redwood’s focus aligns with growing records in energy storage installations, which have surged by 57% year-over-year.
- The collaboration comes against a backdrop of declining new EV sales, highlighting the shift towards energy storage as demand in that sector remains strong.
This partnership embodies the innovative use of EV technology in energy solutions, addressing both environmental sustainability and the growing energy storage market amidst fluctuating EV sales.