Ford and GM Expand into Energy Storage, Diversifying Beyond EVs

The automakers are making major investments in battery storage systems to capitalize on surging demand and offset slower-than-expected EV sales.

Apr. 10, 2026 at 7:11pm

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An abstract, colorful image with sweeping brushstrokes of blue, red, and yellow, representing the dynamic and powerful nature of modern energy storage technology.As automakers diversify into energy storage, the industry is poised for a dynamic transformation in how we power our homes, businesses, and electric vehicles.Marshall Today

As the U.S. EV market faces uncertainty, Ford and General Motors are making strategic moves to expand into the booming energy storage sector. Following Tesla's lead, the automakers are investing billions to transform their facilities into hubs for manufacturing batteries for grid-scale and home energy storage solutions. This diversification allows them to maintain production at their EV plants while tapping into alternative, high-growth markets like utilities and data centers.

Why it matters

The shift to energy storage represents a strategic pivot for Ford and GM, allowing them to offset slower-than-expected EV sales and broaden their business horizons. By leveraging their expertise in battery technology, the automakers can capitalize on surging demand for reliable energy storage solutions to stabilize power grids and enable greater integration of renewable energy sources.

The details

Ford announced plans to transform its Kentucky battery plant into a hub for energy storage battery production, while also dedicating part of its Michigan facility to manufacturing cells for home energy storage systems. GM, which established its GM Energy division years ago, has reported a fivefold increase in sales for its energy products, including the 'PowerBank' system that allows EV owners to store and transfer solar energy. Both companies are making substantial investments, with Ford committing $10 billion to retool its plants and anticipating an additional $2 billion in expansion.

  • In December 2025, Ford announced its intention to transform its battery production facility in Kentucky into a manufacturing hub for energy storage batteries.
  • In 2024, GM introduced its 'PowerBank' energy storage system, available in 10.6 kWh and 17.7 kWh battery capacities.
  • Between January and October of the previous year, GM reported a remarkable fivefold increase in sales for its energy products.

The players

Ford

An American multinational automaker that is making significant investments to expand its energy storage business, including transforming a battery production facility in Kentucky and dedicating part of a plant in Michigan to manufacturing cells for home energy storage systems.

General Motors (GM)

An American multinational automaker that established its dedicated energy division, GM Energy, several years ago and has reported a fivefold increase in sales for its energy products, including the 'PowerBank' energy storage system.

Tesla

An American electric vehicle and clean energy company that has been a pioneer in the energy storage space, building massive battery manufacturing facilities known as 'giga-factories' and deploying its Megapack energy storage system.

Redwood Materials

A company that has partnered with GM to leverage EV batteries for energy storage solutions.

Wade Sheffer

The vice president of GM's energy business, who highlighted the value of the company's PowerBank energy storage system in empowering customers and facilitating the integration of renewable energy.

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What they’re saying

“The PowerBank empowers customers with greater control over their energy consumption, helps mitigate the impact of power outages, facilitates the integration of renewable energy, and unlocks additional benefits.”

— Wade Sheffer, Vice President, GM Energy

What’s next

As the automakers continue to invest in energy storage, it will be important to monitor the impact on their EV production and sales, as well as the broader implications for the energy and power grid sectors.

The takeaway

Ford and GM's strategic shift into energy storage represents a diversification of their business models, allowing them to capitalize on surging demand for reliable energy storage solutions and offset slower-than-expected EV sales in the U.S. market. This move mirrors Tesla's pioneering efforts in the space and highlights the automakers' efforts to remain flexible and adaptable in a rapidly evolving industry.