In 2025, Tesla Motors secured an 82% share of the US stationary battery energy storage market, further solidifying its dominant position in the storage sector. This electric vehicle manufacturer, led by Elon Musk, is building its energy storage business into a new growth pillar amid a slowdown in electric vehicle sales growth.
Although, in terms of global storage shipments, BYD surpassed Tesla Motors in 2025 with a 13% market share compared to Tesla's 10% to become the world's largest battery energy storage system integrator, Tesla Motors maintains an absolute leading advantage in its domestic US market. Tesla's storage product line includes the Powerwall for homes and the Megapack for utilities and large-scale customers, widely used in scenarios such as grid peak shaving, backup power, and renewable energy integration.
At the same time, traditional automakers are accelerating their efforts to enter this rapidly growing market. General Motors recently signed a cooperation agreement with Redwood Materials, founded by former Tesla Motors executive JB Straubel, planning to use used batteries from GM electric vehicles and new batteries manufactured in the US to develop battery energy storage systems. These storage systems will initially be used to meet the surging power demands of artificial intelligence data centers. Currently, GM's used batteries have already been repurposed for a 12-megawatt microgrid project at Redwood's Nevada facility, providing power for AI infrastructure company Crusoe.
Ford announced at the end of 2025 that it would invest approximately $20 billion to enter the battery storage business. Ford plans to utilize its existing factories in Kentucky and Michigan to produce storage systems using lithium iron phosphate technology, aiming to begin deliveries in 2027 with an annual capacity of 20 gigawatt-hours. These storage systems will primarily target data centers, grid operators, and large commercial and industrial customers. Ford executives stated this strategic shift is customer-driven, aimed at reallocating capital to higher-return growth opportunities.
Analysts point out that as artificial intelligence data centers drive power demand to record highs, the strategic importance of grid-scale storage is becoming increasingly prominent. Automakers are extending their manufacturing capabilities and supply chain resources accumulated in the battery field into the storage sector. This not only represents a new pathway to absorb electric vehicle battery production capacity but also opens up a new business direction for the transformation of traditional automakers.
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