Business & Finance

GM and Ford expand into defense and energy storage sectors

The automakers are pursuing military contracts and stationary battery storage to repurpose excess manufacturing capacity.

Updated Sep 5, 2026 · 12:19 UTC1 reports

The short version

General Motors and Ford are expanding operations into military vehicle contracts and grid-scale energy storage systems.[CNBC]
The push aims to repurpose electric vehicle battery manufacturing capacity built during earlier expansion phases.[CNBC]
GM is targeting nearly $700 million in defense revenue for 2026, while Ford is committing $2 billion to start an energy business.[CNBC]

Ford followed GM in seeking U.S. military contracts after approaches from the Trump administration regarding mass production expertise.[CNBC]
GM received a U.S. Army infantry squad vehicle contract that the company said could top $1 billion depending on congressional funding.[CNBC]
GM forecasts its 2026 defense revenue will reach nearly $700 million with positive earnings before interest and tax.[CNBC]
Ford is investing $2 billion to launch an energy business, converting a Kentucky facility built with SK On to produce storage units by late 2027.[CNBC]
Ford's Model e electric vehicle segment projected $4 billion in losses for 2026, aiming to reach breakeven by 2029.[CNBC]

The final value of GM's infantry squad vehicle contract remains subject to future congressional appropriations.[CNBC]
Whether energy storage and military lines will generate enough revenue to significantly offset automotive segment slowdowns remains unproven.[CNBC]

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.