Ford and GM Expand into Energy Storage Markets

Automakers who’ve built their reputations solely on the manufacture of cars are quietly retooling to sell batteries by the megawatt-hour as well as by the mile. The Motor City’s two biggest names, Ford and General Motors, are both expanding into stationary energy storage. To do so, they’re redirecting factory capacity and capital toward containerized and home-storage systems to serve utilities, data centers and homeowners as sales of electric-vehicles appear to soften.

Ford announced plans late last year to convert an existing Kentucky battery plant, in order to make large-format lithium‑iron‑phosphate cells and 20‑foot DC containerized energy storage systems. They also announced plans to use space at their BlueOval Battery Park in Marshall, Michigan, for smaller amp‑hour cells intended for residential storage. The company said they’;; commit roughly $2 billion to the conversion in announcing it was “launching a new business”, and aims to begin deliveries in 2027, with mass production of the smaller cells expected in 2026 and a long‑term target of about 20 GWh of annual capacity.

The push reflects a broader operational shift at Ford signalled by CEO Jim Farley. “The operating reality has changed,” he said in the announcement, adding that the company was “redeploying capital into higher-return growth opportunities: Ford Pro, our market-leading trucks and vans, hybrids and high-margin opportunities like our new battery energy storage business.” 

The automaker reassigned resources away from some EV programs in recent months, while also announcing a new leader for the division, called Ford Energy. This repositioning of manufacturing lines aims to strengthen near‑term returns, while still preserving the option to ramp cell output back toward EVs if demand changes.

GM meanwhile, has been building its energy business for longer than its rival and is already selling a branded home system. The GM Energy PowerBank - announced in 2024 and offered in multiple capacities - can supply many hours of backup power when paired with GM’s Home Hub & Inverter, and integrates with rooftop solar and vehicle‑to‑home functions. GM has also announced supply and deployment collaborations intended to repurpose used EV batteries and deploy large storage arrays as part of its GM Energy strategy, with Redwood Materials among the companies involved in recycling and materials recovery cited as partners by GM.

Industry demand is a key driver. Developers and utilities are installing battery systems to firm up renewable generation and to provide resilience for critical facilities, and commercial customers increasingly view storage as a way to manage outages and energy costs. Ford and GM are pitching similar technology to overlapping customers, large containerized systems for grid and data‑center operators and smaller, modular stacks for homes and small business applications.

The economics are practical rather than rhetorical. Stationary storage uses the same core cell chemistry and assembly skills as EV batteries, enabling automakers to potentially keep lines humming, spread fixed costs and capture sales in markets often supported by state procurement mandates or commercial backup requirements. The companies have not disclosed unit economics or any commercial customer details, so the near‑term financial impact on either remains to be seen.

Both moves leave open a simple strategic advantage: retaining battery manufacturing capability while also diversifying revenue. Ford’s announced capital plan and timeline, and GM’s existing product rollouts and partnerships, mean both firms provide the option of flexibility to pivot production back toward EV cells if vehicle demand trends change.

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