General Motors has joined the race to build batteries for AI data centers and the grid with its ambitious new sodium-ion battery project. In a move that blurs the lines between automotive and tech industries, GM will develop entirely new chemistry tailored for grid-scale deployments through a partnership with energy-storage startup Peak Energy.

The sodium-ion cells offer cheaper, longer-lasting power storage compared to lithium-ion, though they come at the cost of larger size and weight. For context, outside China no other automaker has announced plans to build these cells. GM’s commitment is not just about tech; it's also financial, with a $900 million investment in new battery chemistries.

Meanwhile, GM will continue selling lithium iron phosphate (LFP) cells to LG Energy Solution for use in its energy-storage systems. The company is banking on these partnerships and its work with Redwood Materials to secure its position as a key player in the emerging energy storage market. Redwood's second-life battery packs are already being used at one of GM’s Michigan plants, saving around $3 million over their lifetime.

Ultimately, this strategic move aims to make GM’s factories more reliable and cost-effective, with plans for similar installations across all its facilities. It shows that as the AI revolution continues, even giants like GM are changing gears to stay competitive in the energy game.