The electric vehicle race may be slowing down.
The battery storage race is doing the exact opposite.
In a surprising shift, some of the world’s biggest automakers are now chasing a market that Tesla has quietly turned into a profit machine. And the latest company making a major move isn’t a startup or an energy giant.
It’s General Motors.
But GM isn’t copying Tesla’s playbook. It’s betting on something far riskier.
And that decision could reshape the future of both energy storage and electric vehicles.
GM Wants In on the Battery Gold Rush
For years, Tesla dominated headlines with electric cars.
Now, its energy storage business is becoming one of the most closely watched segments in the industry.
The reason is simple: demand is exploding.
While U.S. EV sales have largely stagnated, installations of large stationary battery systems have doubled over the last two years.
Industry forecasts suggest the growth isn’t slowing anytime soon.
According to the Solar Energy Industries Association, annual battery storage installations are expected to exceed 110 gigawatt-hours per year by 2030—roughly double current levels.
That opportunity is attracting everyone.
Tesla is already there.
Ford has entered the space.
And now GM is making a much bigger push.
As GM Vice President of Battery and Sustainability Kurt Kelty told TechCrunch:
“There’s a lot of potential for this market.”
But that’s only part of the story.
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The AI Boom Is Changing Everything
The battery storage surge isn’t happening in isolation.
A powerful combination of trends is driving demand higher:
- AI data center expansion
- Transportation electrification
- Manufacturing electrification
- Growing electricity demand from HVAC systems
Among those factors, AI may be getting the most attention.
Data center energy demand is expected to nearly triple before the end of the decade.
That means more electricity.
More grid strain.
And a greater need for massive battery systems that can store energy when it’s available and deliver it when demand spikes.
Yet even GM argues that battery storage growth was accelerating before AI became the dominant narrative.
The market was already building momentum.
AI may simply be pouring fuel on the fire.
Tesla’s Advantage Is Bigger Than Many Realize
The numbers help explain why competitors are suddenly paying attention.
Energy Storage Snapshot
| Metric | Tesla Position |
|---|---|
| Share of 2025 energy storage installations | 82% |
| Total market installations | 57 GWh |
| Energy business gross profit margin | Around 30% |
| Typical automaker margins | Significantly lower |
Tesla’s energy generation and storage revenue has doubled since 2023, largely thanks to growing demand for Megapack and Powerwall systems.
Perhaps even more important, the business is generating margins that significantly exceed those of traditional vehicle manufacturing.
For automakers facing intense competition in EVs, that’s difficult to ignore.
And this is where things become interesting.
GM Isn’t Following Tesla
Instead of repurposing existing lithium-ion production capacity, GM is taking a different route.
The company unveiled a new sodium-ion battery chemistry designed specifically for energy storage applications.
The technology won’t be ready until later this decade.
That delay raises an obvious question:
Why wait?
GM believes sodium-ion offers several important advantages:
- Lower-cost materials
- More abundant raw material supply
- Longer cycle life
- Reduced cooling requirements
- Potential supply-chain resilience
Unlike several critical battery materials that are heavily concentrated in China, sodium-based supply chains remain relatively undeveloped.
GM sees that as a strategic opportunity.
According to GM’s Andy Oury, sodium-ion remains in its infancy, creating room for new investment and supply-chain growth.
Key Takeaway
GM isn’t simply entering the battery storage market.
It’s trying to avoid becoming dependent on the same supply chains that dominate much of today’s battery industry.
That could become a major competitive advantage—or a costly delay.
The Bigger Bet May Be Electric Vehicles
Ironically, GM’s battery storage strategy is also tied to its EV ambitions.
The company doesn’t want to divert lithium-ion production away from future electric vehicle demand.
Executives remain bullish on long-term EV growth.
And they believe a new battery chemistry called lithium-manganese-rich (LMR), expected to debut in 2028, could help lower EV costs by roughly 10%.
That reduction could move electric vehicles closer to price parity with gasoline-powered cars.
If that happens, demand could accelerate again.
GM wants to be ready.
Contrarian View: What If GM Is Too Late?
Not everyone will see this strategy as a clear win.
Tesla and other competitors are already scaling aggressively.
Meanwhile, the battery storage boom is being fueled partly by expectations surrounding AI infrastructure growth.
If data center expansion slows or investment cools, market growth could become less predictable.
The risk for GM is obvious:
By waiting for sodium-ion technology to mature, it could miss years of growth that competitors are capturing right now.
GM executives acknowledge the urgency.
Kelty told TechCrunch the company is exploring ways to enter the market faster while continuing sodium-ion development.
Still, the clock is ticking.
What Happens Next?
The battle for battery storage is rapidly becoming one of the most important competitions in the energy industry.
For Tesla, it’s already a highly profitable business.
For Ford and GM, it’s a chance to diversify beyond vehicle sales.
For startups, it’s a once-in-a-generation growth opportunity.
And for the broader economy, it sits at the center of two enormous trends: electrification and artificial intelligence.
The question is no longer whether energy storage will matter.
The question is whether late entrants can catch a company that built its lead years ago.
And as battery demand keeps climbing, that race may become even more important than the EV battle that started it all.
Editorial Disclaimer: This article is based entirely on publicly available information and statements reported by TechCrunch. No facts, figures, quotes, timelines, or outcomes have been altered or fabricated. Analysis reflects current information and may evolve as new developments emerge.