GM sodium-ion batteries are at the center of General Motors’ early-stage push to develop next-generation cells that the company says could reduce U.S. dependence on China by relying more on domestically sourced materials, according to company officials.
“We’re developing a supply chain such that, two years from now, three years from now, it will be domestic,” said Kurt Kelty, GM’s vice president of battery and sustainability, in an interview. “That’s what we’re aiming for, when we get into market, we’ve got a domestic source for that.”
Kelty was discussing batteries the automaker expects to deploy first in energy storage systems, or ESS, stationary installations for homes and businesses including data centers. A spokesperson said GM also intends to prioritize domestic battery cell production for future all-electric vehicles.
His remarks arrived days before Ford Motor faced criticism from the Trump administration over ties to Chinese companies, including technology licensed for domestic battery cell production.
For ESS, GM has partnered with Denver-based startup Peak Energy to develop sodium-ion cells. The approach is intended to reduce reliance on materials where China dominates, such as lithium and ferrous sulfate, and shift to U.S.-available inputs like sodium derived from soda ash.
GM is advancing multiple chemistries for ESS and EV applications. As with any battery formulation, the specific ingredients and proportions affect performance, cost, and stability.
Commercial production of sodium-ion cells with Peak Energy is expected around 2029. In the interim, GM is producing other chemistries through a joint venture for ESS and EVs that include undisclosed amounts of materials from China.
Today, most battery cells rely on raw materials processed in China. The International Energy Agency estimates China produces about 85% of global EV battery cathode active material and more than 90% of anode active material, accounting for roughly 80% of world battery manufacturing.
China also largely controls sourcing and production of lithium iron phosphate, or LFP, batteries. GM currently manufactures LFP cells in the U.S. for ESS with LG Energy Solution, while Ford has licensed LFP cell technology from China’s CATL for EVs and ESS projects.
“You’ve got the resources in the U.S. to keep it totally domestic,” Kelty said, adding that building the industry will take time and arguing the potential for sodium-ion surpasses LFP for ESS.
At a basic level, sodium-ion batteries operate similarly to lithium-ion cells, but GM says the chemistry can perform across a wider range of temperatures and over more cycles.
The Trump administration has emphasized strengthening the U.S. battery supply chain and reducing reliance on China. Earlier this week, Transportation Secretary Sean Duffy voiced “profound concern” over Ford’s China ties, specifically the CATL licensing, even as Ford remains the top producer of vehicles in the U.S.
Days earlier, Kelty said Ford is “following a different path.” He added, “We think it’s more valuable to develop this all domestically, take advantage of domestic supply chains, and develop a technology that’s actually better than the incumbent technology.”
GM sodium-ion batteries and the ‘leapfrog’ strategy
Sam Abuelsamid, a battery specialist and vice president of market research at Telemetry, said localizing a battery supply chain will likely take years, while China continues to innovate and scale new chemistries, including sodium-ion.
“There’s no reason why the LFP materials couldn’t also be produced here,” Abuelsamid said. “There’s ways to do that, but the sodium-ion would be even cheaper and easier to do.”
Kelty has repeatedly said GM aims to “leapfrog” China’s battery technologies, arguing that competing head-to-head with established Chinese supply chains would be difficult. “The better thing to do is try to leapfrog, come up with a different technology that’s actually better that we can actually source here,” he said.
He views sodium-ion as the best option for ESS because its chemistry and temperature tolerance permit operation without active cooling, a major driver of cost and complexity. That could lower total ownership costs for energy storage.
GM is investing $900 million in new battery laboratory facilities at its global tech campus outside Detroit. The expansion includes a prototyping facility of more than 500,000 square feet for manufacturing cells that is slated to begin operations later this year.
Executives acknowledge the funding is modest compared with what would be required to meaningfully reduce China’s grip on the sector. “We are purposely going down the path of having American-developed technology,” Kelty said. “Batteries are really critical for a lot of different areas of our economy here.”
The rivalry between GM and Ford over future energy technologies echoes the broader competition among Detroit manufacturers, a trend explored in Detroit automakers rivalry expands to defense and energy.