Carmakers repurpose battery factories for AI energy storage systems
Carmakers and battery companies are repurposing factories to make energy storage systems for AI and renewable energy, but converting plants won't be easy and demand may not absorb excess capacity. US demand for energy storage is expected to grow, but it won't offset the decline in EV battery demand.
Carmakers and battery companies are repurposing factories to make energy storage systems due to weak US EV demand. General Motors and Ford are among those diversifying into energy storage. The demand for energy storage is expected to grow to support data centers and cloud computing. However, converting factories to produce lithium iron-phosphate batteries used in energy storage systems will take time and money. US battery makers face challenges due to China's dominance in this technology. Demand for stationary batteries in North America is expected to reach 76 GWh this year, but the industry has excess capacity of around 275 GWh.
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