General Motors (GM) stated this week that it would be establishing a new business unit to provide consumers with battery packs, solar panels, electric vehicle chargers and other energy-management products for homes and businesses.
GM Energy will be developed using GM’s battery and software expertise to create a new range of electric vehicles (EVs). The company eventually aims to transition completely away from internal combustion engine (ICE) vehicles to EVs in support of U.S. decarbonisation efforts.
GM Energy will also be working with other renewable energy products such as solar panels and hydrogen fuel cells. Commercial operations have already begun, and GM is expected to roll out new products next year. The new business forms part of GM’s strategy to double annual revenue to $280 billion by the end of this decade.
Vice president of GM’s EV growth operations, Travis Hester, stated: “If you have a sudden unexpected power outage, then you can use your vehicle or your stationary storage box to be able to power your home or small business.” In addition, greater connectivity will allow GM batteries to feed back energy into the regional power grid as needed. Hester highlighted “It was really important to us that when we launched this that it was not a plan for the future, but actually something we’re doing right now.”
Companies such as Tesla have already established a more comprehensive renewables business to support their EV sales, and other auto majors, such as Ford, are expected to do the same within the next few years.
Hester suggested that the market of GM Energy products and services would total between $125 billion and $250 billion. GM will also be working with several partners, such as SunPower, to develop products outside its area of expertise.
