General Motors (GM) said Wednesday it signed a memorandum of understanding with Redwood Materials, aimed at speeding up the rollout of energy storage systems that use the automaker's US-manufactured batteries.

The collaboration will also pursue deployment of energy storage systems using second-life battery packs from GM electric vehicles, the company said.

The partnership is looking to strengthen domestic deployment of energy storage and address rising electricity demand, especially driven in part by AI data centers that are projected to account for 12% of national electricity usage by 2028 from 4.4% in 2023, the carmaker said.

General Motors also said it and Redwood plan to provide further details on the initiative later in the year.

GM shares were up 1.3% in recent trading.

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