GM, Redwood Materials Explore Using Recycled EV Batteries for Energy Storage Systems

Researched by Industrial Info Resources (Sugar Land, Texas)--General Motors Company (GM) (Detroit, Michigan) and Redwood Materials Incorporated (Carson City, Nevada) have signed a non-binding memorandum of understanding (MoU) for which the automaker would supply U.S.-manufactured electric vehicle (EV) batteries and second-life battery packs to Redwood to be recycled for the manufacture of energy-storage systems. Industrial Info is tracking projects from Redwood aimed at boosting its end-to-end battery recycling and materials business.

"Electricity demand is accelerating at an unprecedented pace, driven by AI and the rapid electrification of everything from transportation to industry," said JB Straubel, chief executive officer of Redwood Materials, in a press release.

GM and Redwood said they expect to release more information on their plans later this year.

In June, Redwood launched its Redwood Energy division, which deploys EV battery packs and new modules into "fast, low-cost" energy-storage systems.

The companies said the announcement represents a "a significant step toward taking GM's advanced battery technology beyond EVs and builds on GM and Redwood's existing collaboration." GM already is providing second-life EV batteries to power the largest microgrid in North America, according to the press release, at Redwood's battery material campus in Nevada.

Industrial Info is tracking a $2 billion expansion at the site, which entails constructing a 550,000-square-foot building and installing new equipment so the site can ultimately produce 35,000 metric tons per year of battery-grade copper foil and 100,000 metric tons per year of cathode active materials (CAM)--enough material for 1 million EVs per year. Construction kicked off in August 2024 and the project is expected to wrap up in 2028. Subscribers to Industrial lnfo's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here to read the detailed project report.

Cathode active materials are made from recycled lithium, nickel and cobalt and are responsible for storing and releasing lithium ions during the charging and discharging of a battery, while copper foil allows electric current to flow while also dissipating heat generated by the battery.

Also underway is construction of a lithium-ion battery-recycling facility at Redwood's planned battery materials campus in Ridgeville, South Carolina. The facility is designed to recover a variety of lithium-ion battery materials, with the project expected to wrap up around the end of 2026. Redwood is also planning a grassroot cathode materials and copper foil plant at the campus, although this project is in the late-planning stage. Subscribers can read more information on construction of the recycling and materials facilities in Ridgeville, which have a combined investment value of $3.5 billion.

Battery recycling is part of a circular supply chain to help meet demand for critical minerals. In general, after batteries are dissembled and shredded, the result is "black mass," which can contain high amounts of lithium, cobalt, manganese and nickel. These materials can be extracted from the black mass and reused for new batteries or other applications.

Industrial Info is tracking $6.48 billion worth of capital battery-recycling projects in the U.S., with Redwood accounting for more than 50% of the spend. Subscribers can click here for a full list of projects.

"The market for grid-scale batteries and backup power isn't just expanding, it's becoming essential infrastructure," said Kurt Kelty, vice president of batteries, propulsion and sustainability at GM, in the press release announcing its MoU with Redwood.

For the companies' existing collaboration, GM provides batteries from its Ultium Cells LLC battery plants in Warren, Ohio, and Spring Hill, Tennessee. Subscribers to the GMI Plant Database can click here for the plant profiles.

Subscribers to the GMI Database can click here for the reports on all of the projects discussed in this article and here for the plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).