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General Motors announced a partnership with Peak Energy, a U.S.-based grid storage startup, to develop sodium-ion battery cells for large-scale stationary energy storage, targeting utilities, data centers, and other major power users facing rising electricity demand from artificial intelligence.

Under the arrangement, GM will develop the sodium-ion cells at its Michigan battery labs and retain manufacturing rights, while Peak Energy will incorporate the cells into its energy storage systems, the company said. As part of the deal, GM Ventures will receive an ownership stake in Peak Energy, though financial terms were not disclosed. The first cells are expected to enter trial production at GM's Battery Cell Development Center in 2028, according to TechCrunch.

Sodium-ion batteries use abundant raw materials and carry less fire risk than lithium-ion technology, making them well suited for stationary storage applications where weight and size constraints matter less, according to Bloomberg. The reduced overheating risk that comes with sodium-ion chemistry means Peak Energy's systems are engineered without cooling infrastructure or fire suppression, a design choice that lowers both the initial price tag and long-term maintenance expenses. Peak Energy said its sodium-ion systems reduce energy storage costs by 20% compared to conventional lithium-iron phosphate systems and deliver more than 99% uptime.

"At GM, we know that the application should determine the battery, and for grid-scale stationary storage, sodium-ion is the right solution," Kurt Kelty, GM's vice president of battery and sustainability, said in a statement.

The move is part of a broader push by GM into the energy storage market. The automaker is also expanding its vehicle-to-grid program, which allows EV owners to sell power back to utilities during periods of high demand, with GM taking a share of those payments. Speaking to Reuters at a San Francisco event, GM Energy Chief Revenue Officer Aseem Kapur said the company is in active conversations with roughly 10 utilities and anticipates launching commercially in California and Texas within the next several months. In addition, GM said it is buying a battery storage system from Redwood Materials, the recycling company founded by former Tesla executive J.B. Straubel, for use at one of its Michigan plants.

The energy storage push comes as GM and other automakers look for ways to recoup large investments in EV manufacturing after U.S. consumer adoption fell short of expectations. Data centers now account for roughly half of the country's incremental electricity demand growth, with AI-focused data center consumption surging 50% in 2025, creating significant new pressure on the U.S. grid and driving demand for large-scale storage capacity. U.S. demand for grid batteries is expected to double by 2030 to more than 100 gigawatt-hours, according to Bloomberg NEF.

Peak Energy CEO Landon Mossburg said the three-year-old startup anticipates $10 million in revenue this year, with projections climbing to $100 million in 2027, supported by a backlog of $1.1 billion in commitments.