GM Announces Sodium-Ion Battery Partnership With Peak Energy for Post-2028 Energy Storage and Expands Vehicle-to-Grid Programs

General Motors detailed plans Tuesday to increase vehicle-to-grid capabilities for its EV customers and to develop next-generation sodium-ion batteries. The moves target rising energy costs and demand from data centers and utilities. Kurt Kelty, GM's vice president of battery and sustainability, said in a blog post that sodium-ion-powered energy storage systems have the potential to operate without active cooling and with much less system complexity.

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. Peak Energy was founded in 2023 and its leadership team includes former employees of Tesla, Lockheed Martin and Northvolt.

GM expects the tie-up will produce sodium-ion cells for customer use after 2028. Kelty said Peak Energy already demonstrated how sodium-ion chemistry can translate into lower costs and greater reliability. He added that next-generation sodium-ion cell development will drive energy density higher, with the potential to outperform more mature chemistries, including LFP, over time.

GM is also continuing work on reusing its large EV batteries for energy storage systems with Redwood Materials. The company is producing lower-cost lithium iron phosphate battery cells through its Ultium Cells joint venture with LG Energy Solution. Ultium Cells has about 90 gigawatt hours of production capacity at two plants in Ohio and Tennessee.

In March, Ultium Cells announced a $70 million investment to begin producing LFP batteries for energy storage systems at the Tennessee plant. GM is seeking partnerships with utility companies nationwide to offer vehicle-to-grid services. It is already working with utilities in California and Michigan.

The ability for an EV to send energy back to the grid during peak hours or to power a home could help with reducing energy costs and grid usage, the company said. S. Energy Information Administration. Prices are expected to rise to around 19 cents per kilowatt-hour starting in March 2027.

GM also announced an Energy Pass that targets more seamless public charging for its EV customers, including when using Tesla Superchargers.

All of the all-electric vehicles GM produces as of the 2027 model year will include a North American Charging Standard charging port. GM has spent billions of dollars in recent years to increase its research and development as well as battery cell production. The company is developing an entirely new sodium-ion battery chemistry for use in everything from data centers to its own factories.

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