Battery chemistry shakeup: GM bets on manganese, ford and slate double down on LFP as energy storage surges

By mid-2026, automakers like GM have strategically pivoted toward the burgeoning energy storage market as EV sales plateau in the U.S., capitalizing on the doubling demand for large stationary batteries which the Solar Energy Industries Association projects will surpass 110 GWh annually by 2030. This surge is fueled in part by the rapid expansion of AI data centers, expected to nearly triple their energy consumption by decade's end, alongside widespread electrification across transportation, manufacturing, and HVAC sectors, signaling a fundamental shift in energy infrastructure needs.

GM’s development of sodium-ion battery chemistry exemplifies automakers’ pursuit of cost-effective and supply-resilient alternatives to traditional lithium-ion technology, with sodium-ion batteries offering advantages such as abundant, low-cost materials, elimination of active cooling, and superior charge-discharge cycle durability. As Andy Oury of GM highlights, this chemistry sidesteps reliance on Chinese-controlled cobalt markets, providing a strategic pathway to supply chain resilience and affordability in the evolving stationary storage landscape.

By mid-2026, GM announced a strategic pivot away from lithium iron phosphate (LFP) batteries for electric vehicles, instead championing lithium manganese-rich (LMR) chemistry as its primary 'workhorse' technology for high-volume EV production. Battery chief Kurt Kelty highlighted that LMR cells deliver approximately 33% higher energy density than LFP at comparable costs, promising enhanced EV range and performance while mitigating dependence on critical minerals—a crucial advantage as automakers grapple with supply chain constraints.

Although GM’s Tennessee plant commenced LFP cell production in June 2026, these batteries are now earmarked exclusively for stationary energy storage applications rather than EVs, underscoring the company’s commitment to LMR for automotive use. This shift reflects GM’s long-term collaboration with LG Energy Solution, which has been developing LMR technology since 2015 with the goal of launching commercial prismatic LMR cells by 2028, signaling a carefully staged transition toward next-generation battery chemistry.

Despite the promising attributes of LMR batteries, GM acknowledges that widespread adoption faces technical challenges that must be overcome through further validation. This cautious approach indicates that while LMR could reshape EV cost structures and supply chains, the technology's commercial viability and scalability remain contingent on resolving these hurdles, setting the stage for a competitive battery landscape in the coming years.

By early 2026, Ford is set to begin domestic series production of lithium iron phosphate (LFP) battery cells at its BlueOval Battery Park in Michigan, marking a significant milestone as the company’s first foray into LFP cell manufacturing. This move is supported by licensed technology and critical manufacturing expertise from CATL, which, despite Ford’s full ownership of the plant, plays an essential role in training and ramping up production capabilities to meet the demands of Ford’s upcoming affordable electric vehicles.

Ford’s strategic pivot to LFP chemistry for its forthcoming $30,000 mid-size electric pickup, launching in 2027, underscores a deliberate focus on cost reduction and durability. The vehicle, built on the innovative Universal Electric Vehicle (UEV) platform featuring large megacastings for streamlined assembly, will utilize a 51 kWh LFP battery pack to optimize affordability and ensure compatibility with existing charging infrastructure. This shift away from nickel manganese cobalt (NCM) batteries reflects Ford’s broader ambition to leverage LFP’s lower material costs and longer lifespan to make electric pickups more accessible to mainstream consumers.

Slate’s strategic pivot from nickel manganese cobalt (NMC) to lithium iron phosphate (LFP) batteries for its affordable EV truck was directly enabled by the 2025 policy overhaul under the One Big Beautiful Bill Act, which eliminated the federal EV tax credit’s stringent domestic sourcing requirements. Previously, the $7,500 credit mandated sourcing that effectively barred LFP batteries due to their Chinese-dominated supply chain and nascent U.S. manufacturing, constraining Slate’s options and pricing ambitions. With these restrictions lifted, Slate gained the flexibility to reconsider LFP chemistry, a move that aligned with its goal of producing a low-cost EV truck despite the trade-offs in energy density and range.

By partnering with Hefei-based battery manufacturer Gotion, which operates a factory in Illinois, Slate secured a supply chain that balances cost, durability, and regional manufacturing proximity—key factors in its revamped battery strategy. This collaboration enabled Slate to eliminate the previously offered optional 240-mile battery pack, while simultaneously boosting the standard pack’s range from 150 to 205 miles, all at a lower cost. The Illinois-based production of LFP cells exemplifies how policy shifts have fostered new domestic manufacturing pathways, allowing Slate to maintain affordability without sacrificing essential vehicle performance.