Major automakers and battery suppliers are repurposing factories for energy storage systems (ESS) as electric vehicle growth slows. Ford and General Motors are leading this shift alongside South Korean manufacturers LG Energy Solution, SK On, and Samsung SDI. These facilities will supply power grids and energy-intensive AI data centers.
The pivot addresses the need for grid stabilization via renewable energy and reliable backup power. Manufacturers are utilizing underused EV battery capacity to create new, high-margin revenue streams. Ford is currently converting a production plant in Kentucky. The GM-LG Energy Solution joint venture is retooling its Tennessee facility for ESS production.