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General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F), rivals for more than a century in racing and vehicle sales, are now competing in defense contracting and energy storage, CNBC reported on September 5.
military contracts after the Trump administration approached domestic automakers about using their mass manufacturing expertise.
GM is years ahead in this space, already building a backlog around a U.S.
Army contract for Infantry Squad Vehicles that could exceed $1 billion depending on congressional appropriations.
GM expects its 2026 defense revenue to grow to almost $700 million while targeting positive earnings in the segment this year.
Both companies are also entering the energy storage system market, betting on rising electricity costs and data center power demand.
The global Energy Storage System market is projected to grow from $668.7 billion in 2024 to $5.12 trillion by 2034.
Ford Energy sits within its Model e electric vehicle segment, which is guided to a $4 billion loss in 2026 before targeting breakeven by 2029.
CEO Jim Farley told investors in July that Ford is in the "third inning" of selling out 20 gigawatt-hours of energy storage production capacity, backed by a five-year framework agreement with EDF Power Solutions North America.
General Motors Company (NYSE:GM) and Ford can turn underused EV-related manufacturing capacity into new revenue streams as EV demand falls short of earlier expectations.
GM already generates defense revenue and expects roughly $700 million from the segment in 2026.
Ford has also committed $2 billion to launch its energy-storage business.
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