Arabic version: جنرال موتورز وفورد تتوسعان في الدفاع وتخزين الطاقة
According to Cnbc, General Motors and Ford are pursuing U.S. defense contracts and energy storage businesses as they seek potential growth areas beyond vehicle sales. The initiatives are expected to remain relatively small parts of their operations and revenue for now, but could diversify their businesses as U.S. new-vehicle sales slow.
Both automakers invested billions of dollars in battery-cell plants for electric-vehicle demand that did not materialize as expected. Energy storage systems use technology related to EV batteries to store electricity for homes, businesses and utilities. Global Market Insights estimates the global energy storage system market will grow from $668.7 billion in 2024 to $5.12 trillion by 2034.
GM’s energy unit offers EV charging and residential energy storage systems, while GM Defense has its own energy storage offering. GM’s Ultium Cells joint venture in Tennessee produces storage cells for LG Energy Solution, and GM is working with Peak Energy on next-generation sodium-ion batteries. GM also has a partnership with Redwood Materials to reuse large EV batteries for energy storage systems.
Ford said in December it plans to spend $2 billion to launch an energy business. The company plans to convert a Kentucky battery factory built with SK On to produce energy-storage units by late 2027 and to use space at its Marshall, Michigan, factory for residential-storage cells. Ford Energy is part of the Model e segment, which has guided for $4 billion in losses in 2026 before reaching breakeven by 2029.
In defense, GM has an established unit that it revived in 2017. The company recently received a U.S. Army contract for infantry squad vehicles that it said could exceed $1 billion depending on congressional appropriations. GM expects 2026 defense revenue to approach $700 million. Ford has joined GM in seeking military work and announced a collaboration with General Dynamics Land Systems and Ricardo for the United Kingdom Ministry of Defence’s Light Mobility Vehicle program.
