GM looks at using EV battery operations for AI data storage instead
General Motors spent years ramping up EV battery production, but American drivers haven’t exactly rushed to unplug their gas tanks. So now, GM is shifting gears. It’s offering its battery tech to a power-hungry new customer: artificial intelligence.
In a move that signals just how far the EV market still has to go, GM is partnering with Redwood Materials to supply energy storage systems, not for cars, but for AI data centers
These data centers require a staggering amount of electricity, and batteries (especially the kind GM knows how to make) can help provide it more cleanly than traditional sources.
The idea is to build “microgrids.” They’re small-scale, localized power networks using both new and second-life EV batteries. And this isn’t just a science project.
The Detroit Free Press shared that GM has already signed a memorandum of understanding to power a Nevada microgrid used by Crusoe, a company building modular AI data centers.
The microgrid can deliver 12 megawatts at any moment and stores up to 63 megawatt-hours total. That’s a lot of uptime for algorithms.
GM built battery capacity to produce up to 1 million EVs annually by the end of the decade, thanks to joint ventures in Tennessee, Ohio, and Indiana
But in the first half of 2025, it sold just 78,000 electric vehicles. Even including Honda-built units, the number only climbs to about 105,000. That leaves a big battery surplus and not enough drivers plugging in.
This shift lets GM make the most of what it’s already built. Repurposing EV batteries for stationary storage isn’t new, but it’s suddenly more urgent. AI companies are growing faster than the grid can keep up, and clean energy storage options are in demand.
Not all batteries are created equal. Used EV packs may not deliver the same reliability as new ones built for storage. But in a world desperate for power, a slightly used Ultium module still has serious value.
By tapping into the energy needs of AI, GM isn’t abandoning EVs. It’s extending their usefulness and opening a new revenue stream. If Americans aren’t quite ready to go electric, it turns out the machines that run the internet most definitely are.
