General Motors detailed plans Tuesday to expand its energy storage business by developing sodium-ion batteries and increasing vehicle-to-grid capabilities for electric vehicle owners. The Detroit automaker announced a partnership with Denver-based startup Peak Energy to produce sodium-ion battery cells for customer use after 2028, with GM's battery leader stating the technology "will reshape grid-scale energy storage." The moves address rising energy costs as residential electricity prices in the U.S. rose 48% from 12.76 cents per kilowatt-hour in January 2020 to 18.83 cents per kilowatt-hour in March 2026, according to the U.S. Energy Information Administration. GM said the sodium-ion systems have the potential to operate without active cooling and with lower upfront and operating costs compared to existing chemistries. The automaker is also seeking partnerships with utility companies nationwide to offer vehicle-to-grid services that allow EVs to send energy back to the grid during peak hours.
GM Partners with Peak Energy on Sodium-Ion Battery Development
GM announced a partnership with Denver-based startup Peak Energy to develop sodium-ion battery cells for customer use after 2028. Kurt Kelty, GM's vice president of battery and sustainability, said Tuesday in a blog post that "sodium-ion-powered energy storage systems have the potential to operate without active cooling and with much less system complexity." The automaker stated that not having to cool the battery cells could lead to lower upfront costs as well as operating costs. Peak Energy was founded in 2023 and its leadership team includes former employees of Tesla, Lockheed Martin and battery developer Northvolt, according to its website. A GM spokesman declined to comment on details or cost of the partnership.
At a foundational level, a sodium-ion battery works much like a lithium-ion battery, but GM says it has the potential to perform across a wider range of temperatures and for more cycles. Kelty stated that "our next-generation sodium-ion cell development will drive energy density higher, with the potential to outperform more mature chemistries, including LFP, over time."
GM Expands Vehicle-to-Grid Services for EV Customers
GM announced it is seeking partnerships with utility companies nationwide to offer vehicle-to-grid services for customers. The automaker is already working with utility companies in California and Michigan. The capability allows an EV to send energy back to the grid during peak hours or to power a home through an energy storage system, which GM said could help with reducing energy costs and grid usage.
Residential electricity prices in the U.S. have risen from 12.76 cents per kilowatt-hour in January 2020 to 18.83 cents per kilowatt-hour in March 2026, according to the U.S. Energy Information Administration. The agency forecasts prices will rise to around 19 cents per kilowatt-hour starting in March 2027.
Ultium Cells Operates 90 GWh Production Capacity
GM, through its Ultium Cells joint venture, currently has about 90 gigawatt hours of production capacity at two plants, one in Ohio and one in Tennessee. Ultium Cells in March announced a $70 million investment to begin producing lithium iron phosphate batteries for energy storage systems at the Tennessee plant. GM said it is continuing work on reusing its large EV batteries for energy storage systems with companies such as Redwood Materials and producing lower-cost lithium iron phosphate battery cells through a joint venture with LG Energy Solution.
GM views lithium iron phosphate batteries as a quick way to take advantage of existing battery capacity, while the sodium-ion battery cells are seen as a future solution for energy storage systems.
GM Announces Energy Pass and NACS Port Integration
GM announced an "Energy Pass" that targets more seamless public charging for its EV customers, including when using Tesla Superchargers. The automaker said all of the all-electric vehicles it produces as of the 2027 model year will include a North American Charging Standard charging port.
FAQ
What did GM announce on Tuesday regarding energy storage?
GM detailed plans Tuesday to develop sodium-ion batteries through a partnership with Peak Energy for customer use after 2028 and to expand vehicle-to-grid capabilities for electric vehicle owners. The automaker said the sodium-ion systems have the potential to operate without active cooling and with lower costs.
How much have U.S. residential electricity prices increased since January 2020?
Residential electricity prices in the U.S. rose 48% from 12.76 cents per kilowatt-hour in January 2020 to 18.83 cents per kilowatt-hour in March 2026, according to the U.S. Energy Information Administration.
What is GM's current battery production capacity?
GM, through its Ultium Cells joint venture, currently has about 90 gigawatt hours of production capacity at two plants, one in Ohio and one in Tennessee. Ultium Cells in March announced a $70 million investment to begin producing lithium iron phosphate batteries at the Tennessee plant.
