GM and Ford Shift Focus from EV Batteries to Energy Storage
General Motors and Ford are repurposing their underutilized electric vehicle battery capacity into a new energy storage business, aiming to capitalize on rising demand for battery energy storage systems (BESS). Both automakers have faced significant financial losses due to poor EV sales—Ford with an $19.5 billion write-down and GM with cumulative charges of $10.9 billion—and are now pivoting toward the growing BESS market driven by data centers, grid resilience needs, and renewable energy integration. To scale their new ventures, Ford is investing approximately $2 billion over two years to expand its battery storage business through a newly established subsidiary called Ford Energy. The company plans to deploy at least 20 GWh of annual capacity by late 2027 and has already signed agreements with EDF Power Solutions for up to 4 GWh annually under a five-year framework agreement. General Motors is also entering the energy storage market, having partnered with Peak Energy on sodium-ion battery technology tailored for grid-scale applications. GM previously repurposed used batteries in Redwood Materials' microgrid project and now aims to lead circularity across the entire battery lifecycle.
Topics: Automotive Industry Electric Vehicles Energy Storage Systems (BESS) Strategic Repurposing