GM eyes new battery chemistry to grow AI data center, energy storage business

General Motors is expanding its presence in the energy storage and data center markets by developing next-generation sodium-ion battery technology and enhancing vehicle-to-grid (V2G) capabilities. Through a partnership with startup Peak Energy, the automaker aims to deploy sodium-ion cells after 2028 to address rising energy costs and the infrastructure demands of the artificial intelligence boom. This strategic shift leverages GM's existing battery production capacity and explores chemistries that offer lower costs and reduced system complexity compared to traditional lithium-ion solutions.

GM has entered a development partnership with Denver-based startup Peak Energy to advance sodium-ion battery cells, which Kurt Kelty, GM’s vice president of battery and sustainability, suggests could "reshape grid-scale energy storage." These next-generation cells are designed to operate without active cooling, potentially reducing both upfront and operational costs for large-scale systems. Peak Energy, founded in 2023 by veterans from Tesla, Lockheed Martin, and Northvolt, has already demonstrated the chemistry's potential for reliability. GM expects to produce these sodium-ion cells for customer use after 2028, positioning them as a future alternative that could eventually outperform lithium iron phosphate (LFP) in terms of energy density and cost-efficiency.

To address immediate market needs, GM is also focusing on LFP battery production through its Ultium Cells joint venture with LG Energy Solution. The company currently maintains approximately 90 gigawatt hours of production capacity across plants in Ohio and Tennessee, with a recent $70 million investment earmarked for LFP production at the Tennessee facility specifically for energy storage systems. This pivot toward stationary storage helps GM utilize multibillion-dollar battery plants that were originally scaled for an electric vehicle growth rate that has not yet materialized. Additionally, the automaker is collaborating with Redwood Materials to explore the reuse of large EV batteries in secondary energy storage applications.

Beyond hardware, GM is expanding vehicle-to-grid (V2G) capabilities to allow EV owners to provide energy back to the electric grid or power their homes during peak hours. The company is seeking nationwide partnerships with utility providers, building on existing programs in California and Michigan, to help customers mitigate rising residential electricity prices, which have increased nearly 48% since 2020. These initiatives come as the industry faces mounting pressure from the AI-driven data center buildout and shifting geopolitical risks. By the 2027 model year, GM also plans to integrate North American Charging Standard (NACS) ports across its EV lineup and has introduced an "Energy Pass" to streamline public charging access.