GM turns EV fleet into grid asset

General Motors has moved deeper into the power business by enabling vehicle-to-grid functions for some electric-vehicle customers, positioning its bidirectional EV fleet as a distributed energy resource while pursuing sodium-ion batteries for grid-scale storage.

The announcement, made at GM Empower 2026 in San Francisco, centres on a software update that expands the capability of GM’s vehicle-to-home energy system. The update allows eligible users to send electricity from their EV batteries back to the grid during periods of high demand, provided their utility supports the service. The company says more than 250,000 bidirectional-capable Chevrolet, Cadillac and GMC EVs are already on American roads, giving it a potentially large base for virtual power plant services.

The programme does not mean all 250,000 vehicles can immediately trade power with utilities. The first commercial applications depend on customers owning compatible GM Energy home equipment, utility approval, interconnection rules and market arrangements that allow households to receive payment for exported electricity. GM is discussing deployment with about 10 utilities, with early commercial activity expected to begin in California and Texas, while a Michigan pilot with DTE Energy involves 30 employee homes.

The move reflects a broader shift among carmakers as they seek revenue beyond vehicle sales. EV batteries are idle for much of the day, yet they can store enough electricity to help meet local demand peaks, support homes during outages or reduce the need for fossil-fuel peaker plants. GM says the combined battery capacity of its bidirectional-capable fleet could power about 120,000 homes for up to a week under theoretical conditions.

Sterling Anderson, GM’s chief product officer, framed the strategy as a response to rising electricity demand from artificial intelligence data centres, electrification and ageing power infrastructure. “We see a future where electric vehicles, batteries that power them, and the country’s power grids work together,” he said in remarks prepared for the event.

The company is also moving into stationary energy storage through a sodium-ion battery partnership with California-based Peak Energy. Sodium-ion cells are generally heavier and less energy-dense than lithium-ion cells, making them less attractive for long-range EVs, but their lower material cost, strong thermal stability and suitability for large fixed installations could make them useful for utilities, factories and data centres.

GM plans to develop sodium-ion cells at its Battery Cell Development Center in Michigan, with trial production expected in 2028. Commercial production is still years away, and the company has not disclosed the size of its investment in the Peak Energy partnership. It has, however, committed about $900 million to commercialising new battery chemistries, including lithium manganese-rich and sodium-ion technologies.

The sodium-ion push is aimed partly at reducing dependence on lithium, nickel and cobalt supply chains. Sodium is abundant, cheap and geographically widespread, while grid storage systems can tolerate bulkier batteries if they offer lower costs and long service life. The challenge is scale: China has moved fastest on sodium-ion development, and US manufacturing capacity remains limited.

GM is also expanding work with Redwood Materials, the battery recycling and energy storage company founded by former Tesla executive J. B. Straubel. Redwood already receives scrap from GM battery factories and used EV packs. GM is buying a 7.2 megawatt-hour Redwood storage system for one of its Michigan plants, expecting lifetime savings of about $3 million through peak-demand reduction and backup power.

Vehicle-to-grid technology still faces practical barriers. Utilities must approve safe two-way electricity flows, customers must be compensated clearly, and drivers may be reluctant to discharge vehicle batteries if they fear losing driving range or accelerating battery wear. Regulators also need tariff structures that reward households for grid services without shifting costs to other consumers.

GM’s Energy Pass, unveiled alongside the grid plans, is designed to simplify public charging by allowing Chevrolet, Cadillac and GMC EV drivers to find, start and pay for sessions across multiple networks through existing brand apps. Tesla, Electrify America and IONNA are included at launch, with EVgo and ChargePoint planned for later integration.