Automakers Expand into Energy Storage
Ford Motor Company (NYSE: F) and General Motors (NYSE: GM) are diversifying their revenue streams by entering the energy storage market, following Tesla’s lead. In August 2023, Ford announced the launch of Ford Energy, aimed at providing battery energy storage systems for utilities and large customers, while GM is partnering with Peak Energy to develop next-generation sodium-ion battery cells for grid-scale energy storage in Michigan.
The sodium-ion batteries could offer a cost-effective alternative to traditional lithium-iron phosphate batteries, potentially reducing energy storage costs by 20% and achieving 99% uptime without the need for cooling systems. While GM and Peak Energy have not yet set a specific energy deployment target, Ford plans to deploy at least 20 GWh of energy storage annually starting in late 2027. Tesla’s energy division generated $12.7 billion in revenue last year with margins around 30%, highlighting the market potential for these automakers.
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