GM Building Sodium Batteries for America's Power Grid

General Motors just announced it's building sodium-ion batteries for America's electricity grid, marking a major shift for an automaker that's now becoming an energy company too.

The Detroit giant is partnering with US battery manufacturer Peak Energy to develop grid-scale storage using sodium-ion chemistry, a technology that relies on common salt instead of expensive lithium. GM will develop the technology at its battery research center in Warren, Michigan, while also preparing to start production of lithium iron phosphate batteries within the month.

The move addresses a critical need in America's energy transition. As solar panels and wind turbines generate more of our electricity, utilities need massive batteries to store that power for nighttime and calm days. Traditional lithium batteries work but remain expensive and depend on limited mineral supplies.

GM isn't just making new batteries. The company is finding new life for old ones too. Through a partnership with Redwood Materials, GM is deploying roughly 10,000 used EV batteries into energy infrastructure, including powering an AI data center in Sparks, Nevada.

Starting next year, one Michigan GM plant will use about 100 repurposed battery packs to store 7.2 megawatt-hours of energy. The company expects this installation alone will save more than $3 million in electricity costs over its lifetime.

The automaker is also preparing its entire vehicle lineup for bidirectional charging, meaning GM electric vehicles could send power back to the grid during peak demand. Every Chevy and Cadillac EV will include this capability as a standard feature.

GM is already testing this vehicle-to-grid technology with utility partners across the country. In Northern California, the company is working with Pacific Gas and Electric on a project expected to put 130,000 GM electric vehicles on the road by 2030, with more than 52,000 providing grid-balancing services.

The Ripple Effect

GM's announcement follows Ford entering the same market earlier this year, signaling that American automakers see their role extending far beyond transportation. These companies possess the manufacturing expertise, scale, and battery knowledge to help modernize America's aging electrical infrastructure.

When major manufacturers commit to energy storage, prices typically drop as production scales up. That could make renewable energy more competitive with fossil fuels and help utilities avoid building expensive new power plants.

The collaboration with utilities also means EV owners might soon earn money by letting their parked cars help stabilize the grid during peak hours. That extra income could make electric vehicles more affordable for families still on the fence about making the switch.

Two giants of American manufacturing are now racing to power the grid of tomorrow.