The growing demand for electricity to power AI-focused data centers is driving companies from unexpected industries to enter the energy storage market, including major automotive manufacturers.
What began with battery recycling and repurposing initiatives has evolved into a broader effort to supply large-scale energy solutions. Several automakers have started exploring ways to leverage their battery expertise beyond electric vehicles, with a focus on supporting power-hungry data centers and grid infrastructure.
General Motors has now revealed a major expansion of its energy storage ambitions through new partnerships and battery technologies designed specifically for stationary power applications.
A central part of the strategy is a collaboration with energy storage company Peak Energy to develop a new sodium-ion battery chemistry optimized for grid-scale deployments. While sodium-ion technology has gained attention for its potential advantages, few automakers outside China have publicly committed to manufacturing these cells.
According to GM executives, the energy storage sector presents an ideal entry point for sodium-ion batteries because the technology’s characteristics align well with the needs of large-scale stationary systems.
Although GM has not disclosed the size of its investment in the initiative, the company previously committed hundreds of millions of dollars toward advancing next-generation battery technologies and expanding battery development capabilities.
Sodium-ion batteries operate in a similar manner to lithium-ion batteries but use more abundant and lower-cost materials. They offer benefits such as improved durability, lower costs, and reduced fire risk. However, they generally require more space and weight to store the same amount of energy as lithium-based alternatives.
Peak Energy has already been developing energy storage systems built specifically around sodium-ion technology. Because these batteries generate less heat and pose a lower thermal risk, the company’s systems can eliminate complex cooling and fire-suppression equipment. This simpler design reduces both installation expenses and long-term maintenance requirements.
The partnership calls for GM to manufacture sodium-ion battery cells that Peak Energy will integrate into future storage products. Commercial deployment remains several years away, however.
GM expects trial production of the new cells to begin at its Battery Cell Development Center in 2028. The company believes its advanced development process will accelerate commercialization timelines while reducing costs.
Until sodium-ion batteries are ready for market, GM plans to support energy storage applications using lithium iron phosphate (LFP) battery cells supplied through its existing battery manufacturing relationships.
In addition to its work with Peak Energy, GM is expanding collaboration with Redwood Materials, a company focused on battery recycling and energy storage solutions.
Redwood already processes manufacturing scrap and retired EV battery packs from GM. The companies have established a supply chain involving thousands of used battery packs, which can be repurposed for stationary energy storage applications rather than immediately recycled.
One of Redwood’s existing projects uses second-life EV batteries in a large microgrid installation supporting a Nevada data center. Building on that experience, GM will deploy a Redwood energy storage system at one of its Michigan manufacturing facilities. The company expects the project to improve energy reliability while generating significant long-term cost savings.
Industry leaders view these deployments as an important step in expanding battery reuse beyond data centers and into industrial operations. While data centers often rely on batteries continuously to manage fluctuating power demands from computing hardware, factories typically use energy storage to reduce peak electricity charges and provide backup power during outages.
GM believes these installations will eventually become common across its manufacturing network, helping improve operational resilience while lowering energy costs. As electricity demand from AI infrastructure continues to grow, partnerships between automakers and energy storage companies could play a significant role in strengthening power systems and accelerating the adoption of alternative battery technologies.
