**Ford Motor Company** (NYSE: F) has announced plans to launch a battery energy storage business, building factories in Kentucky and Michigan. Production is set to start in mid-2027, with a projected output of 20 gigawatt-hours of batteries annually by 2030, estimated to generate up to **$5 billion** in revenue. This strategic shift comes amid declining demand for electric vehicles (EVs) in the U.S. and an increased need for energy storage driven by AI data centers.
**General Motors** (NYSE: GM) is also entering the energy sector, exploring “vehicle-to-grid” technology, partnering with utility companies in California and Michigan. GM is focusing on recycled EV batteries for energy storage and researching sodium-ion battery technology, which could offer advantages over traditional lithium-ion batteries.
In contrast to Ford’s straightforward manufacturing approach, GM’s strategy involves multiple initiatives. Wall Street analysts predict that Ford’s new energy venture could yield between **$500 million** and **$600 million** in operating profit annually, while GM’s operating profit margin stands at **6.6%**, potentially offering a robust return depending on the success of its efforts in energy.
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