General Motors and Ford are increasingly focusing on U.S. military contracts and the energy storage system (ESS) market as they seek to diversify their operations amid declining vehicle sales.
Both automakers have begun pursuing military contracts, with GM having a head start through its revived defense unit, which recently secured a contract potentially worth over $1 billion for infantry squad vehicles. Ford is also entering the defense sector, collaborating with General Dynamics for a project with the UK Ministry of Defence.
In parallel, both companies are targeting the ESS market, which is projected to grow significantly from $668.7 billion in 2024 to $5.12 trillion by 2034. Analysts view these sectors as potential growth areas that could help offset losses from their electric vehicle initiatives.
GM is exploring next-generation battery technologies and has partnerships aimed at enhancing its energy offerings, while Ford plans to invest $2 billion in its energy business, including converting a factory for energy storage production.
Although these markets are expected to contribute modestly to revenue in the near term, they represent strategic moves to leverage existing manufacturing capabilities and address rising energy demands