Ford and GM Enter Energy Storage with New Facilities and Partnerships (F, GM)

Ford and General Motors (GM) are entering the energy storage sector, following Tesla, as EV sales growth slows and the U.S. aims to expand domestic manufacturing and diversify portfolios. Ford announced in December 2024 plans to convert its Kentucky battery plant into a utility-scale storage facility and use space in Marshall, Michigan to produce cells for residential storage. The company, which wrote down $19.5 billion in EV-related charges, is expected to invest an additional $2 billion in energy storage and expects higher returns by pivoting to hybrids, trucks, and commercial vehicles alongside storage. GM, through its GM Energy arm, will partner with Redwood Materials in 2025 to repurpose EV batteries for storage and markets its PowerBank for home energy storage. The automaker reported a fivefold sales increase between January and October 2024 and cited a VP who said the tools give customers greater control over energy use, mitigate outages, and support renewable integration. The global BESS market is forecast to reach $14.5B by 2027 at 25.2% CAGR, with Tesla’s storage deployments rising 84% YoY to 43.5 GWh in the October 2024–December 2024 period. Ford and GM’s foray into storage leverages EV battery technology, targeting utilities, data centers, and grid infrastructure amid growing regulatory and commercial demand.