GM, Ford Push Into Defense and Energy Storage as $5.12 Trillion ESS Market Beckons
Updated
Updated · CNBC · Sep 5
GM, Ford Push Into Defense and Energy Storage as $5.12 Trillion ESS Market Beckons
3 articles · Updated · CNBC · Sep 5
Summary
Ford joined GM this year in pursuing U.S. military work while also building an energy-storage business, broadening both automakers beyond slowing vehicle sales and money-losing EV programs.
A $5.12 trillion global ESS market projected for 2034 is driving the shift, as GM and Ford try to repurpose battery plants built for EV demand that fell short.
Ford has committed $2 billion to launch its energy unit, plans Kentucky ESS production by late 2027, and says it is in the “third inning” of selling 20 gigawatt-hours of capacity.
GM is further ahead in defense: its Army infantry squad vehicle contract could top $1 billion, and it expects nearly $700 million in 2026 defense revenue while targeting positive EBIT this year.
The moves remain small beside each company’s core auto business, but analysts see defense and grid storage as credible new growth verticals tied to data-center power demand and domestic manufacturing priorities.