In a wide effort to develop a range of accessories that can help sell its array of electric vehicles, General Motors (GM) is establishing a new energy business to sell batteries, charging equipment, solar panels, and software to residential and commercial customers. When necessary, GM will pump electricity back into the grid using its Ultium battery packs to power homes, recharge cars, and create its own energy storage company.
As a significant producer and retailer of renewable energy, Tesla is specifically targeted by the new business, GM Energy. GM had previously stated its intention to someday surpass Elon Musk’s business in the selling of automobiles; now, it also wants to compete with it in the energy sector.
The batteries used in GM’s residential and commercial battery packs will be the same as those used in the automaker’s electric vehicles, in a manner similar to how Tesla (TSLA) constructs its Powerwall and Powerpack products. Large stationary packs will be constructed out of them to store energy and lessen the need for it during periods of peak demand.
According to Travis Hester, chief EV officer at General Motors, the market for energy-generating and storage devices might be worth $120-150 billion. The goal is to establish GM’s brand as being consistent with not only electric vehicles but also a wide range of goods and services that revolve around EVs and their lithium-ion rechargeable batteries.
Hester claimed that GM has observed Elon Musk’s activity in this area and seen a business potential. Tesla’s energy division has experienced years of consistent growth, with revenues expected to exceed $866 million in the second quarter of 2022.
GM motors new energy storage business can also supply electricity during blackouts and even feed it back into the electrical grid to support situations where the utility may not be able to provide enough electricity on its own. For the sums transferred back to the grid, owners typically receive a credit on their electricity bill. The new GM division will also offer the tools and software needed to use electric cars as energy storage units that, when parked and plugged in, can supply a house with electricity during brief power outages.
General Motors collaborations with other companies
Beginning in 2023, GM Energy will collaborate with California’s Pacific Gas and Electric on a pilot programme to test the idea of using GM electric vehicles, according to GM. The first GM car with bi-directional charging will be the Chevrolet Silverado EV truck, but others will follow. According to GM, the new subsidiary is collaborating with solar energy company SunPower to install solar panels on clients’ homes. All of these devices will be regulated by software programmes that will be launched at the end of 2023, said Mark Bole, head of V2X and battery solutions for GM Energy.
The business plans to switch in its own battery cells and storage units over time when GM’s battery plants come online and output of its Ultium-branded battery systems increases, according to Hester. The company also intends to produce its own range of standby power generators using hydrogen fuel cells under the Hydrotec name.
The launch dates for these new products are still far in the future, much like its strategy for EVs. In collaboration with PG&E, GM is continuing to trialling its V2H service with a small number of residential customers in California. It hopes to roll it out to more households in early 2023. The company’s solar goods won’t be offered until 2024.
In order for the ecosystem for electric vehicles to operate consistently and effectively everywhere, integrated energy management systems for both residential and business users will be crucial. To make the changeover as smooth as possible for customers, we can probably anticipate seeing other manufacturers try comparable strategies.
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