Ford and General Motors (GM) are expanding into energy storage, following Tesla’s lead. This move aims to reduce EV manufacturing costs and reliance on imports while expanding their business portfolios. The U.S. EV market is growing slower than expected, prompting companies to explore energy storage development due to rising demand. The global battery energy storage system market is projected to reach $14.5 billion by 2027.

Tesla has made strides in energy storage, surpassing 3 GWh of energy storage deployments in 2020. This success has inspired other automakers to enter the energy storage sector. Ford is converting its Kentucky plant for energy storage batteries, with plans for residential storage cells and electric truck batteries. GM is partnering with Redwood Materials for energy storage using EV batteries, with sales increasing fivefold.

Automakers like Ford and GM are shifting focus to hybrids, trucks, and energy storage for higher returns. GM’s PowerBank, introduced in 2024, offers home storage options for solar energy. The energy storage business provides more control over energy use and value for customers. As EV sales slow, automakers are capitalizing on the growing energy storage market for sustainable growth.

Ford and GM are following Tesla’s lead by investing in energy storage operations. This strategic move allows automakers to cater to alternative markets like utilities and data center developers amid uncertain EV demand. Expanding into energy storage provides opportunities for automakers to pivot back to EV battery production and maintain manufacturing operations in the U.S.

Read more at Yahoo Finance: Ford and GM Join Tesla in the Energy Storage Race