Ford and GM pivot to energy storage as EV demand wanes

IndustryCorporate Action Impact 4
โดย The Motley Fool·Read original
Summary · why it matters

Ford and General Motors are pivoting into the energy storage business as electric vehicle demand softens and power needs for AI data centers surge. Ford announced in January 2026 that it will use its CATL battery technology license to build a battery energy storage business, with factories in Kentucky and Michigan set to begin production in mid-2027, ramping to 20 gigawatt-hours annually and targeting $5 billion in revenue by 2030. Morgan Stanley estimated in mid-May that Ford's energy segment could generate $500 million to $600 million in annual operating profit. GM last week unveiled its own energy initiatives, including vehicle-to-grid partnerships with utilities in California and Michigan, a collaboration with Redwood Materials to recycle EV batteries for utility-scale storage, and a partnership with Peak Energy to develop sodium-ion batteries after 2028. While Ford's current 0.8% operating margin would yield only about $40 million from $5 billion in revenue, GM's 6.6% margin offers more profit potential, and Tesla's energy business has grown to $12.8 billion in revenue with nearly 30% gross margins, suggesting significant upside if the legacy automakers can replicate that success.

Impact on stocks 6

Electrification & Mobility▲ · 3 stocks
Ford Motor Company
F
▲ PositiveDemandrelevance

Ford is building a battery energy storage business targeting $5B revenue by 2030, driven by surging demand from AI data centers.

General Motors Company
GM
▲ PositiveDemandrelevance

GM is launching energy initiatives including vehicle-to-grid partnerships and battery recycling, capitalizing on growing energy storage demand.

Tesla Inc
TSLA
▲ PositiveCompetitionrelevance

Tesla's energy business is cited as a benchmark with $12.8B revenue and 30% gross margins, suggesting legacy automakers may replicate its success, but no direct impact on Tesla.

Financials▲ · 1 stocks
Artificial Intelligence▲ · 1 stocks
Others▲ · 1 stocks

Theme Impact 6

Off-coverage companies 2

Peak EnergyPrivate± Mixed
relevance

Redwood MaterialsPrivate± Mixed
relevance

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