General Motors and Ford Motor, competitors for over a century in the automobile industry, are diversifying into defense and energy sectors. Both companies have responded to opportunities presented by the Trump administration, which approached U.S. manufacturers about supporting military operations. The automakers are initially focusing on military vehicle production, with the potential for expansion into additional defense applications.
The energy storage systems market represents a significant growth opportunity for both companies. These systems rely on similar battery technology used in electric vehicles to store power for residential, commercial, and utility-scale applications. The global ESS market is projected to expand substantially, with estimates suggesting growth from $668.7 billion in 2024 to $5.12 trillion by 2034. Both companies have invested heavily in battery production facilities that were built for electric vehicle manufacturing, and the ESS sector offers an alternative use for this capacity.
GM has taken an earlier approach to the defense sector, having reestablished its defense division in 2017. The company recently received an Army contract for infantry squad vehicles valued at over $1 billion, contingent on congressional appropriations. GM projects its 2026 defense revenue will reach nearly $700 million. The automaker is also developing energy storage capabilities through partnerships with companies like Peak Energy for sodium-ion battery technology and Redwood Materials for battery reuse and recycling.
Ford has committed $2 billion to launching an energy business, with plans to convert a Kentucky battery production facility to manufacture energy storage units by late 2027. The company also allocated factory space in Michigan for residential storage cell production. Industry analysts view Ford’s energy storage division as a critical component for achieving profitability in its electric vehicle operations, with the company guided toward breakeven status by 2029. Both companies view these new ventures as complementary to core automotive operations amid declining U.S. vehicle sales.
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