Global automakers are moving in earnest into new businesses that use their advanced manufacturing capabilities to make up for weak demand. They are accelerating the convergence of AI and manufacturing technology to expand their reach.

Tesla, led by Elon Musk, declared in 2021 that it was no longer a car company but an AI company that operates robotaxis and makes its humanoid robot Optimus. In the same year, Hyundai Motor acquired humanoid robot company Boston Dynamics.

The Information reported that automakers' push for change appears to be accelerating further in recent months.

GM plans to produce batteries for large energy storage systems used in power grids and AI data centres, and supply its first system in 2028.

TechRadar reported that GM decided to produce sodium-ion battery cells for stationary energy storage systems for utilities, data centres and large power users in cooperation with energy storage company Peak Energy.

Peak Energy plans to apply cells produced by GM to its energy storage systems and supply them to utilities and large power users. The cooperation is seen as an example of GM expanding a strategy that had focused on vehicle batteries into stationary energy storage.

GM and Peak Energy believe sodium-ion batteries can operate across a wider temperature range than lithium-ion batteries. They expect this can eliminate costly cooling infrastructure required for grid-scale lithium-ion storage facilities.

Tesla is making significant gains from its stationary energy storage devices. Tesla recently said its second-quarter installations of stationary ESS batteries rose 41 percent from a year earlier.

ㆍGM targets grid market with sodium-ion, seeking to reshape the battery landscape

Expansion into new businesses is also notable at automakers in other countries. French automaker Renault has started making drones for its military, and China's BYD has entered the humanoid robot market.

The Information reported that it remains to be seen whether these businesses will lead to attractive profits, but the industry is not trying to stick to existing methods as the global auto industry contracts. Neel Mehta (닐 메흐타), a partner at G2 Venture Partners, said, "Every company is trying to benefit from physical AI and expanded investment in AI infrastructure."

Ford is being assessed as delivering some results in its newly entered battery business.

Ford is building plants in Michigan and Kentucky to produce large stationary ESS aimed at AI data centres and power grids. Ford's moves are seen by investors as a strategy to ride the AI boom. The company's share price also jumped 45 percent within two weeks of a May announcement by Ford's energy business unit.

ㆍFord officially launches energy storage subsidiary Ford Energy, seeking opportunity in battery oversupply

Electrek reported that Ford Energy's main product is the DC Block, a standardised battery system in the form of a 20-foot container. The system has an energy capacity of 5.45 MWh and is designed based on lithium iron phosphate prismatic cells, offering thermal stability and long life. It can operate in extreme environments ranging from minus 35 degrees Celsius to 55 degrees Celsius and integrates a liquid-cooled thermal management system to maintain performance for more than 20 years. First deliveries to customers are scheduled for the second half of 2027.

Chinese EV startups, like Tesla, see humanoid robots as a next growth engine. BYD has started developing humanoid robots, and Li Auto also said earlier this year it plans to produce humanoid robots.

Xpeng, which announced its entry into the humanoid robot market in 2023, will begin sales of its commercial robot Iron in 2027.

Compared with batteries, humanoid robots are expected to take a relatively long time for the market to mature. But the shift could be seen positively by investors. Mehta said, "Entering the battery business is now starting to deliver results, but it will take much longer to commercialise robots at scale." He added, "Just the fact that automakers are expanding into new technology areas such as batteries and robots could lead investors to significantly lift the valuations of some companies."