US Automakers Pivot to Energy Storage as EV Sales Struggle
Original: After Struggling With EVs, US Automakers Pivot to Energy
Why This Matters
Major automakers shifting from struggling EV business to energy storage for AI-driven data centers
Ford announces Ford Energy subsidiary for battery storage systems, targeting utilities and data centers with first deliveries in 2027. GM and Stellantis also shifting focus from EVs to energy storage after struggling with electric vehicle transitions.
Ford officially spun off Ford Energy this week, focusing on battery energy storage systems for utilities, industrial customers, and data centers. The company will repurpose unused EV battery production lines in Kentucky, with first deliveries planned for late 2027. The announcement drove Ford's stock up 13 percent in a single day. Ford previously took a $19.5 billion write-down on EV programs last year while scrapping some electric vehicles in favor of hybrids. GM is working with Redwood Materials on energy storage batteries and repurposing an EV battery plant in Tennessee with LG Energy Solution. Stellantis partnered with Samsung SDI for energy storage production in Indiana. The pivot capitalizes on federal tax credits for commercial battery storage projects while EV incentives were reduced by GOP legislation.