Tesla's battery business attracts major automaker competition
Original: Everyone wants a piece of Tesla’s battery business
Why This Matters
Energy storage market growth outpaces EVs as automakers seek higher-margin businesses
GM announced new sodium-ion battery chemistry for energy storage market, following Tesla and Ford. Energy storage sales doubled in two years while EV sales stagnated. Market driven by AI data centers and electrification trends.
GM unveiled sodium-ion battery technology targeting the energy storage market, joining Tesla and Ford in the sector. While US EV sales stagnated, stationary battery installations doubled in two years, with Solar Energy Industries Association projecting 110 GWh annual installations by 2030. Tesla dominates with 82% of 57 GWh installed in 2024, generating 30% gross margins versus 15% for EVs. GM's Kurt Kelty cited market potential driven by AI data centers tripling energy demand and economy-wide electrification. Startups like Base Power ($1 billion Series C) and Lunar Energy ($232 million) are also entering. GM's sodium-ion cells offer supply chain resilience, avoiding Chinese-controlled materials like cobalt, with cheaper materials and longer cycle life than lithium-ion.