The pivot to storage

General Motors is making its strongest push yet into stationary energy storage, announcing three new battery initiatives on Tuesday. The automaker will co-develop sodium-ion cells with startup Peak Energy, supply lithium iron phosphate (LFP) batteries to LG Energy Solution for integration into data center and utility storage systems, and deepen its tie to battery recycler Redwood Materials. The deals aim to tap surging electricity demand from artificial intelligence and to extract value from GM’s $900 million investment in battery chemistry, as its core electric-vehicle business slows after the elimination of U.S. tax incentives.

“The way we’re getting into the market is the easy way, through ESS. The performance characteristics are just what is needed in that market.”

Sodium-ion: cheaper, but not for cars

The centerpiece is GM’s partnership with Peak Energy, a Bay Area startup with $100 million in funding and a pilot facility in Escondido, California. GM will co-develop sodium-ion battery cells at its Battery Cell Development Center in Warren, Michigan, aiming for trial production by 2028. Sodium-ion chemistry swaps lithium, cobalt, and nickel for sodium, iron, and manganese, cutting costs and reducing reliance on China-dominated supply chains. The trade-off is lower energy density — roughly 120 to 160 watt-hours per kilogram, compared with 250 to 300 for typical lithium-ion cells — making the cells too heavy for cars but well-suited to stationary storage, where weight does not matter.

Sodium-ion140

Lithium-ion275

Sodium-ion

140 Wh/kg

Lithium-ion

275 Wh/kg

Data from the article text

“In this market, it’s all about cost.”

Peak Energy’s grid-scale systems eliminate liquid cooling and fire suppression, because sodium-ion cells run with lower overheating risk. Paul Menson, GM’s director of energy storage commercialization, said eliminating those components reduces both upfront and maintenance costs: “Eliminate the part, eliminate the problem.”

Partnerships and production timeline

While sodium-ion development proceeds, GM will supply LFP cells to LG Energy Solution, which will integrate them into storage products for data centers and utilities. LFP chemistry is already mature in stationary storage, and GM has been producing such cells as part of its broader electrification push. GM says its purpose-built storage technology will be 20 to 25 percent cheaper than systems from competitors that reuse EV batteries. The company’s venture arm is also making a strategic investment in Peak Energy, though it did not disclose the amount.

Industry context and competition

GM follows Tesla and Ford into a fast-growing market. Tesla has sold storage batteries since 2015, and Ford launched its Ford Energy subsidiary in May, with its stock up 20 percent since then. Morgan Stanley estimates Ford Energy could generate $500 million to $600 million in annual pre-tax earnings at scale. Across the industry, at least eight underutilized U.S. EV battery factories are being repurposed for electricity storage. GM’s battery chief Kurt Kelty drew a sharp contrast with Ford, which licenses battery technology from China’s CATL: “We are not licensing somebody else’s technology from China. We’re building on GM battery know-how in America for a great market that needs durable, cost-effective storage at scale.” GM also plans to introduce software enabling its bidirectional EVs to feed power back to the grid, turning vehicles into flexible grid assets.