is transportation editor with 10+ years of experience who covers EVs, public transportation, and aviation. His work has appeared in The New York Daily News and City & State. General Motors and Redwood Materials are joining forces yet again, this time with the intent to build energy storage units made out of new batteries and recycled EV packs. The two companies signed a non-binding memorandum of understanding to build energy storage out of US-manufactured batteries, as well as “second-life” EV packs from GM’s vehicles. The announcement comes on the heels of Redwood’s decision to move more aggressively into the energy storage business with the creation of a new division. The company’s first project will be building a storage system for an AI development center in California. Battery storage systems play a crucial role in balancing energy for the grid. These systems can store energy from a variety of sources, including renewables like wind and solar, releasing it when needed, which helps save power during periods of low demand. The rise of AI is putting increasing pressure on the grid, in the US and globally. The steepest rise in global electricity demand is coming from new data centers in the US and China, as well as the manufacturing of electric vehicles, batteries, solar panels, and semiconductors. The rise of AI is putting increasing pressure on the grid, in the US and globally GM has a preexisting partnership with Redwood to recycle scrap from its battery manufacturing facilities in Warren, Ohio, and Spring Hill, Tennessee, as well as end-of-life EV batteries . The automaker says this new deal will help power its ambitions to expand beyond EV batteries and into grid management and energy storage. GM has its own energy division that sells power banks, charging equipment, solar panels, and management software to residential and commercial customers. “The market for grid-scale batteries and backup power isn’t just expanding, it’s becoming essential infrastructure,” said Kurt Kelty, GM’s VP of batteries, propulsion, and sustainability, in a statement. “Electricity demand is climbing, and it’s only going to accelerate. To meet that challenge, the U.S. needs energy storage solutions that can be deployed quickly, economically, and made right here at home. GM batteries can play an integral role.”