GM and Ford are pivoting from underutilized electric vehicle (EV) battery capacity to focus on battery energy storage systems (BESS) amid declining EV demand. Both companies, having taken substantial write-downs (Ford with $19.5 billion and GM with $10.9 billion), are now targeting the booming market for battery storage driven by the needs of data centers and grid support.
Ford has launched a BESS business and plans to invest approximately $2 billion over the next two years to scale up its operations, intending to utilize existing battery manufacturing capacity in Kentucky. They aim for at least 20 GWh of annual battery storage production by late 2027, and have established agreements with EDF Power Solutions for ongoing procurement.
Similarly, GM has entered the energy storage space and is exploring innovative technologies like sodium-ion chemistry for grid-scale applications. Both companies are focused on repurposing battery technology in various sectors, including microgrids.
The U.S. energy storage market is experiencing unprecedented growth, with a record 20.2 GWh of new capacity added in Q2 2026, reflecting a significant shift towards energy storage solutions as utilities work to improve grid reliability.
