General Motors and Ford Motor are expanding their century-old rivalry into U.S. military contracting and energy storage systems, seeking new revenue streams as traditional auto demand cools and vehicle sales slow. Both legacy automakers are pursuing military vehicle programs and massive grid-scale power projects to diversify their industrial operations, according to reports from CNBC and Yahoo Finance.
Military Contracts and Defense Bids
Ford joined General Motors this year in seeking U.S. military contracts after the administration approached domestic automakers to utilize their mass manufacturing expertise, according to CNBC reporting. GM Defense has already engineered the Infantry Squad Vehicle to meet U.S. military specifications using its off-road Chevrolet Colorado ZR2 midsize truck architecture. Meanwhile, Ford is bidding its Ranger pickups to replace older British military fleets, as reported by The Defense Post, and recently received a tactical endorsement for its Ranger Pickup line from Gear Patrol.
Wall Street analysts note that while these defense efforts currently form a small slice of total corporate revenue, they establish valuable new operating verticals. Morningstar senior equity analyst David Whiston told CNBC that Ford is effectively following GM’s lead into defense contracting as both firms look to offset slower commercial vehicle adoption with stable government programs.
Energy Storage Systems and Data Center Demand
Alongside defense pursuits, both automakers are investing heavily in energy storage systems (ESS) to capitalize on rising consumer electricity costs and surging power demands from data centers. The global ESS market is projected to expand from $668.7 billion in 2024 to $5.12 trillion by 2034, according to research from Global Market Insights. Devon Wilson, vice president of sales and marketing at LG Energy Solution’s U.S. energy storage division, stated at a recent industry event that the country faces a massive fundamental electricity need.
Automakers are positioning their existing battery manufacturing capacity to capture this demand after spending billions on EV battery plants that outpaced actual consumer uptake. According to company disclosures reported by CNBC:
- General Motors: GM produces storage cells through its Ultium Cells joint venture in Tennessee, partners with Redwood Materials for second-life battery reuse, and collaborates with Denver startup Peak Energy to develop next-generation sodium-ion batteries for grid-scale storage. GM’s energy unit also supplies residential charging and ESS options.
- Ford Motor: Ford announced a $2 billion investment in December to launch an energy business, which includes converting a Kentucky battery factory built alongside partner SK On to manufacture units for energy storage by late 2027.
Market Outlook and Financial Impact
Industry analysts emphasize that while these new ventures will not immediately match the top-line scale of traditional auto sales, they provide essential operational flexibility. Morningstar analyst David Whiston told CNBC that entering the energy storage market makes logical sense for utilizing idle EV factory capacity to serve the booming data center sector. As both companies scale their defense bids and energy infrastructure timelines toward the late 2020s, these industrial pivots mark a strategic shift in how Detroit automakers deploy legacy manufacturing assets.
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