General Motors and Ford are turning underutilized EV battery capacity into a new revenue stream as demand for battery energy storage systems (BESS) continues to grow.
The details: The two Detroit automakers—which have written down billions in EV investments after demand failed to meet early expectations—are shifting battery capacity toward energy storage for data centers and infrastructure supporting the electric grid, reported OilPrice.com.
Ford Energy, a new Ford Motor Company subsidiary, will provide U.S.-assembled BESS for utilities, data centers and large industrial and commercial customers in the United States.
GM has launched an energy storage business and partnered with Peak Energy to develop and deploy purpose-built sodium-ion chemistry for grid-scale storage systems.
What they’re saying: “This strategic initiative will leverage currently underutilized electric vehicle battery capacity to create a new, diversified and profitable revenue stream for Ford. The company also plans to invest roughly $2 billion in the next two years to scale the business,” said Ford, per OilPrice.com.
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Why it matters: Ford and GM’s battery strategies could help the automakers generate revenue from previous EV investments as they recalibrate their electric vehicle plans around more diversified powertrain portfolios, potentially freeing up resources to support future products and other investments that benefit dealers.
Between the lines: The pivot could become a significant business for Ford, which reported $19.5 billion in losses tied to EV write-downs in 2025, and GM, which has recorded cumulative charges totaling $10.9 billion, as demand for battery energy storage systems continues to soar.
Energy storage demand from data centers and grid infrastructure is rising, with storage supplying more electricity to the grid in the first eight months of 2026 than in all of 2025, according to a Solar Energy Industries Association report, per OilPrice.com.
Utility-scale battery storage capacity in the United States has surged over the past three years, with an average annual growth rate of 70%, the U.S. Energy Information Administration said last month.
Bottom line: Ford and GM are finding new uses for battery investments made during the industry's aggressive EV expansion, turning excess capacity into a potential revenue source as they pursue more measured electric vehicle strategies. If successful, the businesses could help offset past EV losses while giving the automakers greater financial flexibility to invest in the vehicles and technologies reaching dealer showrooms.
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