GM just bet on a battery chemistry with less than 1% US market share — and the reason has nothing to do with beating lithium-ion at its own game

General Motors is partnering with startup Peak Energy to develop sodium-ion batteries for grid-scale energy storage, a technology with less than 1% market share in the US. Despite lithium-ion's dominance in powering phones, EVs, and grid batteries, GM is betting on sodium-ion cells due to their lower cost, safety, and abundance of raw materials like sodium.

With sodium-ion batteries having lower energy density but potential for large-scale stationary storage, GM sees an opportunity to utilize excess battery manufacturing capacity from building out for EV demand. This move highlights the necessity for a diverse portfolio of energy storage options in the transition to a low-carbon grid, where different technologies like solar, wind, lithium-ion, and sodium-ion can address distinct energy challenges for a sustainable future. By making a strategic bet on sodium-ion batteries, GM is embracing the idea that multiple technologies will be needed to make a renewable energy grid affordable in the long run.