G.M. Plans to Sell Energy Storage Batteries as E.V. Sales Flag

Key Points:

• General Motors announced plans to manufacture large storage batteries, entering a growing market alongside Tesla, Ford, and other automakers to offset slower U.S. electric vehicle (EV) sales.
• These storage batteries, often the size of shipping containers, store excess energy from renewable sources and are used by utilities, data centers, and other large energy consumers for backup power and demand management.
• Tesla has been producing storage batteries since 2015, and Ford recently converted a Kentucky factory to make large batteries after halting EV battery production due to disappointing car sales.
• Automakers are turning to battery production to improve returns on their investments amid reduced EV sales in the U.S., following the elimination of up to $7,500 in federal tax incentives last year.
• Despite setbacks in the U.S., global EV sales are rising, driven by higher fuel prices linked to the war in Iran, and industry leaders expect electric vehicles to gradually replace gasoline and diesel-powered cars.