GM And Ford Expand Into Defense And Energy Storage Markets

According to CNBC, General Motors and Ford Motor are expanding into U.S. military contracting and the energy storage system market as both automakers look for new growth areas beyond electric vehicles. GM said it expects 2026 defense revenue to rise to almost $700 million and is targeting positive earnings before interest and tax this year, while Ford said in December it plans to spend $2 billion to launch an energy business and convert a Kentucky battery factory to make storage units by late 2027. GM recently won a U.S. Army contract to build infantry squad vehicles that it said could exceed $1 billion depending on congressional appropriations. Ford also announced a tie-up with General Dynamics Land Systems and engineering firm Ricardo to compete for a next-generation vehicle for the United Kingdom's Ministry of Defence. In energy storage, Global Market Insights estimates the global ESS market will grow from $668.7 billion in 2024 to $5.12 trillion by 2034. GM is developing next-generation sodium-ion batteries with Peak Energy and has a partnership with Redwood Materials, while Ford CEO Jim Farley said the company is in the "third inning" of selling out 20 gigawatt hours of ESS production capacity after a framework agreement with EDF Power Solutions North America.