Battery Makers Shift Gears as EV Growth Levels Off

As EV growth slows, battery makers turn to grid storage, using flexible factories to serve both cars and power grids

9 Jan 2026

Battery makers in the US are widening their focus beyond electric vehicles as growth in EV demand slows in several major markets and pressure on electricity grids increases.

What was initially an expansion driven largely by carmakers is becoming a broader effort to serve both transportation and energy systems. Manufacturers are increasingly using the same production lines to supply batteries for vehicles and for large-scale energy storage.

Ford Motor offers a clear example of the shift. The company has begun directing part of its EV battery manufacturing capacity towards stationary energy storage projects. While Ford is not alone, the move underlines how battery producers are reassessing where near-term demand is strongest.

The strategy does not signal a retreat from electric vehicles. Instead, it reflects an effort to balance demand across multiple markets using the same underlying technology. Battery plants require high and steady utilisation to remain economical, but EV demand can fluctuate as government incentives change and new models are rolled out.

At the same time, utilities, data centres and renewable energy developers are seeking more battery storage to manage rising electricity demand and increasingly complex power grids. Stationary batteries can store surplus electricity and release it during periods of peak demand, supporting grid stability and improving the use of renewable power.

By relying on existing factories and supply chains, companies such as Ford aim to enter the energy storage market without the cost and delay of building new plants. Executives have described the approach as a way to better match production with demand while supporting long-term manufacturing investment in the US.

Suppliers are also adjusting. Battery partners including SK On now operate in a market where flexibility between EV and energy storage applications is increasingly valuable. Analysts say diversification can help manufacturers absorb demand swings, policy changes and pricing pressure.

Challenges remain. Competition in grid storage is intensifying, margins may narrow as capacity grows, and safety rules, permitting and performance guarantees add complexity. Still, industry observers view the move as a logical extension of the battery business rather than a shift away from electric vehicles.

As energy and transport systems become more closely linked, battery makers are positioning themselves to supply both vehicles and the power networks that support them.