GM's Grid Energy Push
GM Accelerates Grid Energy Storage Strategy with Sodium-Ion and Repurposed EV Batteries
Key Points
Peak Energy, GM’s sodium-ion partner, is backed by about $100 million in funding and already produces sodium-ion cells at a pilot facility in Escondido, California, while building a larger factory it says will be capable of producing 10 GWh of cells annually.
GM and Peak’s sodium-ion approach uses different materials than typical EV lithium-ion: sodium-ion cells rely on sodium, iron, and manganese instead of lithium, cobalt, and nickel—helping reduce dependence on concentrated supply chains in China; the articles also put sodium-ion energy density at roughly 120–160 Wh/kg versus 250–300 Wh/kg for modern lithium-ion EV cells.
GM said its sodium-ion work is being engineered in Michigan at its Wallace Battery Cell Innovation Center (in Warren) with Peak Energy, and the effort is described as being backed by GM Ventures.
GM battery VP Kurt Kelty emphasized the durability/resilience angle of sodium chemistry, saying: “Sodium is one of the most abundant elements on Earth, and that abundance creates a path toward battery systems built from more accessible materials with greater long-term resilience.” He added that for utilities and hyperscalers, the goal is “delivering reliable, affordable power over long periods of time in real-world conditions.”
In expanding its Redwood Materials relationship beyond scrap and recycling into second-life storage, Redwood said it has already received “over 28,000 metric tons” of material from GM and Ultium Cells for recycling, with “an additional 10,000 EV packs” in the pipeline for repurposing through Redwood Energy (which the article notes launched in mid-2025).
General Motors is partnering with startup Peak Energy to build sodium-ion battery cells for grid-scale energy storage, targeting trial production by 2028. The move comes as AI data centers drive a surge in electricity demand that GM says opens a massive new market for stationary battery systems TradingView.
GM is also deepening its relationship with Redwood Materials to cover the full battery lifecycle — from recycling scrap to repurposing old EV packs as grid storage. A 1.5 MW / 7.2 MWh second-life system built from roughly 100 retired GM battery packs will be installed at a GM factory in Michigan, with projected electricity savings of more than $3 million over its lifetime Hoodline.
Why Sodium-Ion Beats Lithium for Storing Grid Power
Sodium-ion cells carry a real drawback: they store only 120–160 watt-hours per kilogram, versus 250–300 Wh/kg for modern lithium-ion EV batteries. But for a storage unit bolted to a factory floor, weight does not matter Head Topics. What does matter is cost, temperature resilience, and supply chain security.
Sodium-ion cells use sodium, iron, and manganese instead of lithium, cobalt, and nickel. That cuts dependence on supply chains concentrated in China. The chemistry also works across a wider temperature range, reducing the need for expensive cooling systems that grid-scale lithium-ion units typically require TradingView. GM battery VP Kurt Kelty put it plainly: "Sodium is one of the most abundant elements on Earth, and that abundance creates a path toward battery systems built from more accessible materials with greater long-term resilience."
Peak Energy's Path From Pilot Plant to 10 GWh Factory
Peak Energy already produces sodium-ion cells at a pilot facility in Escondido, California. The startup has raised about $100 million and is building a larger factory it says will hit 10 GWh of annual cell output — enough to supply substantial grid storage capacity Hoodline. GM Ventures, GM's investment arm, is backing the effort.
Under the deal, Peak handles cell design and early production. GM takes on manufacturing scale-up, testing, and funding. Engineering work is underway at GM's Wallace Battery Cell Innovation Center in Warren, Michigan Head Topics. Kelty says the target customer is utilities and "hyperscalers" — the tech giants running AI data centers — who need "reliable, affordable power over long periods of time in real-world conditions."
Redwood Materials Turns Old EV Packs Into Factory Power Plants
Redwood Materials has already received more than 28,000 metric tons of battery material from GM and Ultium Cells for recycling. Now 10,000 additional EV packs are in the pipeline for repurposing through Redwood Energy, a subsidiary that launched in mid-2025 GuruFocus.
The first project is that 1.5 MW / 7.2 MWh system at a GM plant in Michigan. The system will charge when electricity demand — and price — is low, then discharge during peak hours. Redwood says that load-shifting strategy will cut the site's electricity bills by more than $3 million over the system's lifetime Hoodline.
GM Pushes Regulators to Unlock Vehicle-to-Grid Payments for Drivers
GM released an open letter to regulators and utilities on June 8, calling for coordinated rules and incentives so EV owners can sell power back to the grid. The concept is called vehicle-to-grid, or V2G. GM says its expanding lineup of EVs with bidirectional charging can turn parked cars into distributed power assets TradingView.
The broader strategy is clear: as EV sales growth slows, GM wants batteries to generate revenue at multiple stages — in the car, on the factory floor, and eventually through recycling. Critics note that sodium-ion has been "five years away" for years, and that falling lithium-iron-phosphate prices could close the cost window before GM's 2028 trial production target arrives Head Topics.
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