Auto Battery Manufacturers Shift North American Output to Energy Storage Amid AI Data Center Surge

Auto battery manufacturers are pivoting production from electric vehicles to energy storage, leveraging rising demand from AI data centers to revive idle capacity. According to CRU data, 10 North American battery plants have initiated conversions, with 7 focusing on the energy storage market as electric vehicle sales decline. Energy storage systems stabilize grids and power for homes and businesses by mitigating intermittency in wind and solar generation. Following cancellations of equivalent to 20 million EV batteries, major automakers are adapting: Ford is adjusting a Kentucky plant, and Kurt Kelty, GM’s battery business leader, is considering in-house production. Stellantis and Samsung SDI are shifting Indiana joint-venture lines to produce storage batteries, with the three major traditional automakers potentially supplying AI data centers. AI-driven data center construction has spiked energy use and demand for uninterruptible power, driving growth for storage batteries. Tesla’s energy and grid storage business revenue rose 27% to $12.8 billion in 2025, compared to $2.8 billion in 2024, while its automotive segment declined 10%. Federal tax credits for EVs were pared, but the Inflation Reduction Act maintains production subsidies for batteries.