A major U.S. automaker General Motors has partnered with Redwood Materials, founded by Tesla co-founder and ex-CTO JB Straubel, to build powerful energy storage systems designed for AI data centers and large-scale industrial use. This collaboration brings together auto expertise and cutting-edge battery recycling to tackle the growing demand for reliable, high-capacity energy solutions.
It is also seen in as a competition with Tesla’s Megapack. As GM focuses on domestic manufacturing. The goal is to not just extend the life of GM’s EV batteries but to give them a second purpose in powering things like AI data centers and factories. The idea behind the partnership is utilizing both new and used GM batteries and put them to work in a way that keeps costs manageable while supporting the country’s rising energy needs in a responsible way.
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At the same time, GM is pushing hard on battery innovation to stay competitive in the electric vehicle space. Through its Ultium Cells joint venture, the company is expanding production across different battery chemistries, not just the familiar NCMA pouch cells, but also lithium iron phosphate and lithium-manganese-rich options. GM sees the LMR tech as a promising next step, with the potential to improve driving range, performance, and cost efficiency, which could give the company a serious edge as the EV market keeps evolving.
Redwood Materials is already running a 12-megawatt, 63 megawatt-hour energy storage project at its Nevada site, using old GM EV batteries. It’s the biggest microgrid system of its kind in North America right now. Now GM is aiming to expand further into battery recycling and energy storage, stepping beyond its traditional role as just a carmaker.
Lately, GM has also started to grab attention on Wall Street for a different reason. As of July 2025, its market cap is sitting around 51 billion dollars, seen by many as undervalued given the company’s long-term potential. The stock is trading at roughly six times its expected earnings, which has some investors wondering if the market is overlooking what GM is actually building. Analysts at firms like Morningstar believe there’s room for the stock to rise, possibly toward $80 a share, if GM continues to execute on its plans.
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That investor interest is now fueled by GM’s strategic partnerships and its steady move into areas like EV tech, AI, and energy storage. From deals with companies like FedEx and Walmart to its work with Nvidia on smarter, tech-driven systems, GM is showing it’s ready to play a bigger role in shaping the future of clean energy and transportation.
From big-name fleet clients like FedEx and Walmart ordering electric delivery vans, to collaborations with AI leaders like Nvidia, GM is quietly becoming more than just a carmaker. It’s positioning itself as a serious player in the evolving mobility and clean tech space.