General Motors and Ford, longtime competitors in the automotive industry, are now expanding their rivalry into the U.S. defense and energy sectors. Both companies have begun pursuing military contracts after the Trump administration encouraged automakers to lend their mass manufacturing expertise to the Pentagon. Their initial focus lies on delivering military vehicles, with General Motors notably securing a contract for infantry squad vehicles from the U.S. Army that could exceed $1 billion. Ford is also entering defense, partnering recently with General Dynamics and Ricardo to compete for the U.K. Ministry of Defence’s Light Mobility Vehicle program.

In addition to defense, GM and Ford are investing heavily in energy storage systems (ESS), leveraging the technology overlap with electric vehicle batteries. The global ESS market, driven by rising energy costs and expanding demand from homes, businesses, and data centers, is projected to grow dramatically, reaching over $5 trillion by 2034. Both automakers are repurposing capacity initially intended for electric vehicle battery production, which has struggled financially, to capitalize on this promising sector. Ford plans to invest $2 billion into energy storage by 2027, converting battery plants for ESS production, while GM is developing new battery technologies, including sodium-ion batteries, and collaborating with startups for grid-scale storage solutions.

Financially, these new ventures are still small relative to overall revenue and vehicle sales, which have slowed in the U.S., but analysts view them as important avenues for diversification. GM expects its defense unit to generate nearly $700 million in revenue in 2026, aiming for positive operating results and broader industrial collaborations with companies like Lockheed Martin. Meanwhile, Ford is betting on its ESS segment to turn profitable by 2029, underscoring the growth potential seen by investors interested in Model e’s business expansion beyond traditional passenger vehicles.

This strategic shift by both automakers reflects a pragmatic response to challenges faced in electric vehicle initiatives, where billions have been lost so far. By leveraging existing manufacturing strengths and exploring government defense contracts alongside booming energy storage demand, GM and Ford hope to open new revenue streams and carve out competitive advantages in sectors beyond automobiles. Their moves echo historical precedents like World War II when both companies aided military production, signaling that their rivalry now extends well beyond the showroom floor into national security and energy innovation.