GM eyes new battery chemistry to grow AI data center, energy storage business

General Motors is expanding efforts to capitalize on the expected growth of energy storage and data centers by promoting different battery cell chemistries, while also offering more support for its electric vehicle owners to combat higher energy costs.

The Detroit automaker detailed plans Tuesday to increase its vehicle-to-grid capabilities — in which a vehicle can provide energy to the electric grid — for its EV customers and develop next-generation sodium-ion batteries that GM's battery leader said "will reshape grid-scale energy storage."

Both moves are meant to address concerns about rising energy costs amid an artificial intelligence boom. The stock market has speculated that vast sums of money will be spent on infrastructure to support a big data center buildout.

"Sodium-ion-powered energy storage systems have the potential to operate without active cooling and with much less system complexity," Kurt Kelty, GM's vice president of battery and sustainability, said Tuesday in a blog post. "In large energy storage systems, that matters."

Not having to cool the battery cells could lead to lower upfront costs as well as operating costs, the automaker said.

GM is partnering with Denver-based startup Peak Energy on sodium-ion battery cell development, after the company already demonstrated how the chemistry can "translate into lower costs and greater reliability," Kelty said.

The automaker expects the tie-up with Peak Energy will produce sodium-ion cells for customer use after 2028.

The leadership team of Peak Energy — which was founded in 2023 — 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 with Peak Energy.

Along with developing new sodium-ion battery cells, 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, or LFP, battery cells through a joint venture with LG Energy Solution.

LFP batteries are viewed as a quick way for companies to take advantage of existing battery capacity, while GM said it sees the sodium-ion battery cells as a future solution for such systems.

"Our next-generation sodium-ion cell development will drive energy density higher, with the potential to outperform more mature chemistries, including LFP, over time. In a market increasingly shaped by cost pressure, energy demand growth, and geopolitical risk, that's a real differentiator," Kelty said.