GM expands battery strategy for data center and energy storage growth

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GM battery strategy expansion

Highlights

GM is expanding vehicle-to-grid and energy storage capabilities, seeking utility partnerships to serve data centers and manage higher EV customer energy costs.
GM's collaboration with Peak Energy will develop next-generation sodium-ion batteries for grid-scale storage, aiming for customer use after 2028 and lower system complexity.
Ultium Cells, GM's joint venture with LG Energy Solution, has 90 GWh capacity and invested $70 million in Tennessee to produce LFP batteries as U.S. electricity prices rise toward 19 cents per kWh by 2027.

Battery roadmap and grid services

As reported by CNBC, GM said on Tuesday it is broadening its battery and energy initiatives to capture expected growth in data centers and energy storage while helping electric vehicle customers manage higher energy costs.

The Detroit automaker detailed plans to expand vehicle-to-grid capabilities, allowing EVs to send power back to the grid during peak periods or support homes through GM energy storage systems. It also said it is seeking partnerships with utility companies across the U.S. to help offer those services more widely.

GM is also developing next-generation sodium-ion batteries with Denver-based startup Peak Energy. Kurt Kelty, GM's vice president of battery and sustainability, said in a blog post that the chemistry has the potential to reshape grid-scale energy storage because it can operate without active cooling and with less system complexity, which could reduce both upfront and operating costs.

The company expects its collaboration with Peak Energy to produce sodium-ion cells for customer use after 2028. GM said the batteries may also perform across a wider range of temperatures and over more cycles than conventional lithium-ion cells.

Manufacturing base and cost pressures

GM said it is continuing parallel work on lower-cost and reused battery systems as it builds out its broader storage business. The company is reusing large EV batteries for energy storage systems with partners including Redwood Materials, and is producing lithium iron phosphate, or LFP, battery cells through its joint venture with LG Energy Solution.

Through the Ultium Cells venture, GM currently has about 90 gigawatt hours of production capacity at two plants in Ohio and Tennessee. Ultium Cells announced in March a $70 million investment to begin producing LFP batteries for energy storage systems at the Tennessee plant.

The strategy comes as residential electricity prices in the U.S. continue to climb. According to a recent forecast from the U.S. Energy Information Administration cited in the report, prices have risen nearly 48% since January 2020, reaching 18.83 cents per kilowatt-hour in March 2026, and are expected to rise to around 19 cents per kilowatt-hour from March 2027.

Our earlier article on Meta’s data center push explained how the company launched America’s Workforce Academy, a free fast-track training program aimed at filling skilled-trades roles needed for U.S. data center construction and operations. We also noted that while data center building activity is surging nationwide, on-site staffing typically drops sharply once facilities move from construction into steady-state operations, highlighting uncertainty around the long-term job footprint.

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GM expands battery strategy for data center and energy storage growth

Highlights

Battery roadmap and grid services

Manufacturing base and cost pressures

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