General Motors and Ford are pursuing military contracts and entering the energy storage system market as they seek new growth areas beyond vehicle sales. Both businesses are expected to remain relatively small contributors for the foreseeable future, but could help diversify operations and use battery capacity built for electric vehicles after the automakers lost billions of dollars on EV initiatives. GM has a longer-established defense business and recently received a U.S. Army infantry squad vehicle contract that could exceed $1 billion, while targeting nearly $700 million in defense revenue in 2026. Ford is expanding into defense and plans to invest $2 billion in an energy business, including converting a Kentucky battery plant for energy storage production by late 2027. Analysts view energy storage as a potential beneficiary of rising electricity demand from data centers and higher consumer energy costs.