Technology· Big Tech

GM, Ford Turn EV Battery Bust Into Energy Storage Bet

General Motors and Ford are redirecting billions in losses from underutilized electric vehicle battery production toward the rapidly expanding energy storage market, establishing new business units to supply battery systems to data centers, utilities, and grid operators. Both automakers are repurposing existing battery manufacturing capacity and investing heavily to capture growing demand driven by AI data center expansion and renewable energy integration. The pivot represents a strategic shift as the legacy automakers seek profitability in grid-scale energy storage after scaling back EV production.

By AI NewsroomPublished about 12 hours agoUpdated about 12 hours ago4 views

Why It Matters

This transition highlights how traditional automakers are adapting to shifting market conditions by leveraging existing infrastructure for emerging infrastructure needs. The move also underscores the explosive growth in U.S. battery storage demand, which reached record installation levels in 2026 and has become critical for grid stability as data centers and renewable energy sources proliferate.

Key Facts

Ford write-down: $19.5 billion in EV-related charges
GM write-down: $10.9 billion in cumulative EV-related charges
Ford Energy capacity target: At least 20 GWh of battery storage annually by late 2027
Q2 2026 storage installations: 20.2 gigawatt-hours, record quarterly capacity
Ford-EDF agreement: Up to 20 GWh total procurement over five years

General Motors and Ford are shifting resources from struggling electric vehicle operations toward a booming energy storage sector, capitalizing on billions in losses by reconfiguring battery production facilities. Ford has established Ford Energy, a new subsidiary that will manufacture battery energy storage systems (BESS) for utilities, data centers, and industrial customers using repurposed capacity at its Glendale, Kentucky facility. The company plans to invest approximately $2 billion over the next two years to expand this business and aims to deploy at least 20 gigawatt-hours of storage capacity annually by late 2027.

GM has similarly launched energy storage operations alongside vehicle-to-grid technology offerings. The automaker is partnering with Peak Energy to develop sodium-ion battery chemistry for grid-scale applications and previously supplied repurposed battery packs to Redwood Materials for a major North American microgrid installation. Both manufacturers are leveraging their existing battery expertise and infrastructure to meet surging demand from grid operators seeking to stabilize power systems increasingly strained by data center energy consumption and renewable energy integration.

The timing of this transition aligns with extraordinary growth in the U.S. energy storage market. In the second quarter of 2026 alone, the nation installed 20.2 gigawatt-hours of new capacity, the highest quarterly volume on record. Through the first half of 2026, installations reached 30.8 gigawatt-hours, and battery storage supplied more electricity to the grid in the first eight months of 2026 than during the entire previous year. Utility-scale storage capacity has grown at an average annual rate of 70 percent over the past three years.

Ford has already secured major contracts through its May framework agreement with EDF Power Solutions North America, which provides for up to 4 gigawatt-hours of procurement annually over five years. These commercial partnerships demonstrate early market validation for the automakers' energy storage strategies. For GM and Ford, redirecting underutilized battery production capacity into this high-growth sector transforms prior capital losses into what both companies expect will become a sustainable, diversified revenue stream as the energy transition accelerates.