# US automakers diversification into defense and energy > Live situation record from CLSTR: https://clstr.news/situations/us-automakers-diversification-into-defense-and-energy > Updated: 2026-09-26T01:33:29.000Z. Sources: 15. Developments: 5. Major U.S. automakers, specifically Ford and General Motors, are diversifying their business models toward defense contracting and energy storage systems (ESS) in response to slowing traditional vehicle sales. Ford and GM are leveraging domestic mass-production expertise to pursue military vehicle programs, with GM developing an Infantry Squad Vehicle and Ford utilizing its Ranger line for military bids. Simultaneously, both companies are repurposing battery manufacturing capacity to serve the growing ESS market for homes, data centers, and electrical grids. General Motors is specifically focusing on developing sodium-ion battery technology to reduce United States dependence on Chinese-dominated supply chains. Through a partnership with Peak Energy, GM aims to use abundant domestic resources to “leapfrog” existing supply chains. To support these advancements, GM is investing $900 million in new battery laboratory and prototyping facilities near Detroit, with commercial production of sodium-ion cells expected around 2029. In terms of sustainability and circularity, GM has transitioned from pilot programs to full-scale implementation of recycled materials. Following a partnership with Cirba Solutions, GM has successfully completed a closed-loop recycling pilot. As of September 2026, GM has successfully integrated 100% recycled nickel, cobalt, and manganese into the cathode active material of new electric vehicle battery cells. These recycled components, processed from end-of-life battery packs, are used by the Ultium Cells joint venture to manufacture cells for vehicles produced at GM’s Spring Hill and Factory ZERO plants. GM states these materials meet the same standards for quality, safety, and performance as virgin raw materials. Furthering its efforts to secure domestic supply chains, GM is also partnering with MP Materials to source industrial magnets. MP Materials is preparing to begin commercial deliveries of neodymium-iron-boron magnets to GM in the fourth quarter of 2026. ## Claims - General Motors has successfully recycled materials from used batteries to create cathodes for new electric vehicle batteries. (single source) - The nickel, cobalt, and manganese used in the new cathode material are 100% sourced from recycled materials. (single source) - The recycling pilot program processed 80 end-of-life electric vehicle batteries. (single source) - The process produced more than 12 tons of active material for new cathodes. (single source) - Leapmotor aims to eliminate the need for 12V auxiliary batteries in new vehicles starting in 2027. (single source) - Leapmotor's CTC 3.0 technology integrates low-voltage power supply into the main battery pack. (single source) ## Timeline ### 2026-09-26: MP Materials to supply General Motors with magnets by late 2026 MP Materials plans to begin commercial deliveries of neodymium magnets to General Motors in Q4 2026, marking a shift from rare earth mining to domestic component manufacturing in the United States. 2 sources. https://clstr.news/cluster/mp-materials-to-supply-general-motors-with-magnets-by-late-2026 ### 2026-09-23: General Motors begins shipping EVs with 100% recycled battery minerals General Motors has begun shipping electric vehicles equipped with new battery cells containing 100% recycled nickel, cobalt, and manganese, marking a milestone in closed-loop battery recycling. 5 sources. https://clstr.news/cluster/general-motors-deploys-evs-with-100-recycled-battery-minerals ### 2026-09-21: General Motors implements energy reductions and battery recycling General Motors is advancing sustainability by reducing North American facility energy use by 25 percent and launching a battery recycling program to produce new EV cells using recovered materials. 2 sources. https://clstr.news/cluster/general-motors-implements-energy-reductions-and-battery-recycling ### 2026-09-14: General Motors develops domestic battery tech to reduce China reliance General Motors is developing sodium-ion battery technology with Peak Energy to reduce US dependence on Chinese materials for energy storage and electric vehicles, targeting domestic production by 2029. 4 sources. https://clstr.news/cluster/general-motors-develops-new-battery-tech-to-reduce-us-reliance-on-china ### 2026-09-05: Ford and General Motors pivot to defense and energy storage Ford and General Motors are expanding into military vehicle contracts and energy storage systems to offset slowing automotive sales and repurpose existing battery manufacturing capacity. 2 sources. https://clstr.news/cluster/ford-and-general-motors-pivot-to-defense-and-energy-storage --- Cite as: US automakers diversification into defense and energy. CLSTR, https://clstr.news/situations/us-automakers-diversification-into-defense-and-energy