EVs were just the start… General Motors has plans to expand its battery biz. Yesterday the auto giant said it’s launching a unit called GM Energy that’ll sell “energy management” products, like batteries and solar panels. GM’s investing billions in EV tech as part of its plan to produce only electric cars, like the Chevy Bolt and the Hummer EV, by 2035. But it may’ve found another use for its tech:
- Hard + soft: GM Energy will sell hardware (think: home batteries and solar panels) and software (think: tech to link EVs and homes to energy grids) starting next year. Its software could help companies manage efficient charging for entire EV fleets.
- Home + office: GM is making energy products for individuals and businesses. You could use its batteries and panels to keep the lights on during outages or make $$ selling extra solar energy to the grid.
Not exactly leading the charge… GM isn’t the first automaker to enter the energy-management industry, estimated to be a $125B to $250B market. Tesla launched its energy-storage division, Powerwall, in 2015 — and last quarter the home-battery biz raked in $866M in revenue. And in June Toyota began selling its residential battery system to customers in Japan.
Rivalries can lead to surprising spinoffs… During the space race, NASA’s massive R&D investment led to unrelated innovations, like Lasik eye surgery and memory-foam mattresses. Today the EV race is also yielding successful spinoff industries like energy-management solutions, smart-car software, and data-driven insurance. Another example: last year GM launched BrightDrop, which sells electric vans and fleet-management software to clients including FedEx.