GM Takes Aim At Tesla's Energy Storage Business, Too

General Motors (GM) is strategically expanding into the utility-scale energy storage market, directly challenging Tesla’s Megapack business. This move comes amid Tesla’s recent struggles in electric vehicle (EV) sales, exemplified by GM’s GMC electric Hummer reportedly outselling Tesla’s Cybertruck in Q2. GM’s new collaboration with Redwood Materials, founded by Tesla co-founder and former CTO JB Straubel, aims to develop large-scale energy storage systems tailored to meet the surging power demands of AI data centers and other applications. This partnership leverages both newly manufactured GM batteries and second-life EV batteries, positioning GM to capitalize on growing grid-scale battery needs amid uncertain EV market conditions and potential declines in EV tax credits. The collaboration builds on prior efforts where GM and Redwood deployed second-life EV batteries in Nevada to power AI infrastructure, creating the largest second-life battery system globally and North America’s biggest microgrid. Redwood’s business model focuses on lithium-ion battery recycling and repurposing, supported by significant funding