US firms to give used EV batteries a second life to feed AI hunger

General Motors (GM) and Redwood Materials have partnered to repurpose used electric vehicle (EV) batteries into large-scale energy storage systems, addressing a critical environmental challenge posed by the upcoming influx of first-generation EV batteries. This initiative supports GM’s sustainability strategy by providing a second life for retired automotive battery packs, which typically retain substantial energy capacity even after falling below optimal levels for vehicle use. The repurposed batteries are integrated into microgrids—localized, independent power grids that offer highly reliable, uninterrupted electricity—crucial for energy-intensive operations such as AI data centers. A notable project in Sparks, Nevada, already powers a 63 megawatt-hour microgrid supplying energy to an AI infrastructure company, marking the largest such installation in North America. The program tackles the growing demand for energy storage solutions driven by the rapid expansion of AI data centers, which are expected to triple their share of U.S. electricity consumption from 4.4% in 2023 to 12% by