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

General Motors is ramping up its initiatives to leverage the growing demand for energy storage and data centers by exploring innovative battery cell chemistries. The Detroit-based automotive giant announced plans to enhance its vehicle-to-grid technology, which allows electric vehicles (EVs) to supply energy back to the grid, thereby providing additional support to its EV owners as energy costs rise. In a recent blog post, Kurt Kelty, GM’s vice president of battery and sustainability, highlighted the company's commitment to developing next-generation sodium-ion batteries, asserting that these advancements could significantly transform grid-scale energy storage. He stated that sodium-ion systems could function without active cooling, simplifying the overall system and potentially lowering both upfront and operating costs. GM has partnered with Peak Energy, a Denver-based startup founded in 2023, to develop these sodium-ion battery cells. This collaboration comes after Peak Energy demonstrated the practical benefits of this new chemistry, which promises lower costs and greater reliability in energy storage applications. GM anticipates that these sodium-ion cells will be ready for customer use by 2028. In addition to sodium-ion development, GM is actively working on repurposing its large EV batteries for energy storage in partnership with companies like Redwood Materials. The automaker is also producing lithium iron phosphate (LFP) battery cells through a joint venture with LG Energy Solution, as LFP batteries are seen as a quick solution to maximize existing battery capacity. Kelty emphasized that the next-generation sodium-ion cells are designed to enhance energy density, potentially outperforming more established battery chemistries like LFP over time. With the market increasingly influenced by cost pressures, rising energy demands, and geopolitical risks, GM’s innovations in battery technology could provide a competitive edge. Despite investing billions into research and development, GM faced challenges in achieving the anticipated growth of all-electric vehicles. Currently, through its Ultium Cells joint venture, GM operates two plants with a combined production capacity of about 90 gigawatt hours in Ohio and Tennessee. Recently, Ultium Cells announced a $70 million investment to start manufacturing LFP batteries at the Tennessee facility. As the energy landscape evolves, GM is exploring partnerships with utility companies across the nation to offer vehicle-to-grid services, which could enable customers to reduce their energy costs by supplying power back to the grid during peak hours. Currently, GM is collaborating with utility providers in states like California and Michigan. The rising electricity prices, which have surged nearly 48% in the U.S. since January 2020, underscore the need for solutions like GM’s energy storage systems. Looking ahead, GM also unveiled its new “Energy Pass” program aimed at streamlining public charging for EV users, including access to Tesla Superchargers. Furthermore, all all-electric vehicles rolling out from GM starting in the 2027 model year will feature a North American Charging Standard port.