American automotive giant General Motors (GM) is following its rival into grid scale storage – after both pulled back from their failed electric vehicle developments – but is deciding to place its battery bets on relatively new sodium-ion technology.
GM announced last week a partnership with Peak Energy, which was founded in 2023 and in 2025 delivered the first grid-scale sodium-ion storage solution ever deployed to the US electric grid. Peak is aiming to begin production at a domestic giga-scale sodium-ion battery manufacturing facility early next year.
The two companies aim to combine Peak’s own passively cooled sodium-ion battery storage technology with GM’s battery cell development. GM will develop sodium-ion battery cells at its Michigan battery labs while retaining exclusive manufacturing rights, while Peak will incorporate the cells into its proprietary energy systems.
Lithium-ion battery chemistries – such as lithium iron phosphate (LFP) and nickel manganese cobalt (NMC) -have dominated deployment in EVs and grid scale batteries, but chemistries such as sodium-ion are now emerging as a potentially safer, more sustainable and lower cost alternative for stationary storage.
Peak Energy says its passively cooled battery storage system is able to reduce energy storage costs by 20 per cent compared to conventional systems, while delivering more than 99 per cent uptime.
“Lowering the cost of energy is one of the most important issues facing America today,” said Landon Mossburg, CEO and co-founder of Peak Energy.
“We are proud to develop an energy storage system that is safer, cheaper, and faster to deploy that any other technology on the market, enabling the US to meet rapidly growing energy demand without saddling consumers with higher prices.
“The future of grid storage will be defined by affordability, reliability and American innovation.”
Kurt Kelty, VP of battery and sustainability at GM, said sodium-ion is the right solution for grid scale storage and will deliver lower-cost energy storage at scale for the US grid.
Ford is following much the same path, as announced in May when the company unveiled its new energy storage subsidiary Ford Energy, which will make LFP batteries.
This follows Ford’s announcement in December that it would take a massive $US19.5 billion ($A29.3 billion) hit to its profits in a pivot away from EVs that saw the company redirect its focus back to internal combustion engine (ICE) and hybrid models.
Ford’s plans are focused around its battery manufacturing site in Glendale, Kentucky, which will similarly be retooled to build LFP battery energy storage systems.
In a note to clients, Morgan Stanley analysts said car companies are uniquely positioned to participate in energy storage and related markets given their manufacturing scale, supply chain expertise, and established customer relationships.
“That said, GM’s strategy stands out: the company is investing in a more nascent technology that is only just beginning to see commercialization, primarily in China,” they wrote.
“While commercialization may take longer and come with added execution risk relative to the well-known LFP technology, successful deployment could support a more durable and differentiated positioning over time.”
It noted that GM is also increasing vehicle-to-grid capabilities for EV customers (i.e. VPPs), which has the potential to drive improved EV ownership economics and aid the grid during times of elevated demand.
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