General Motors Co. is in negotiations with Lockheed Martin Corporation to manufacture parts for the defense contractor’s weaponry, according to a report published on Monday. The discussions signal a strategic move by the automaker to leverage its manufacturing base for the defense sector, driven by Pentagon concerns over domestic weapons manufacturing capacity. GM may produce widely used components to help Lockheed boost munitions production, though the exact parts are still being determined.

GM’s CEO, Mary Barra, has engaged in discussions with Trump administration officials about a larger military role for the automaker. GM, which re-entered the defense business nearly a decade ago with its GM Defense subsidiary, is exploring opportunities to expand its defense business and identify new revenue sources. Ford Motor Company CEO Jim Farley has also stated that his company is in discussions with the U.S. government about military-related projects, as per the report.

Defense Shortages Drive GM Move

The ongoing discussions come in the wake of the Pentagon’s concerns about the capacity of domestic weapons manufacturing. Due to ongoing conflicts in Ukraine and Iran, there has been a significant decrease in the stocks of missiles and other crucial weaponry. The Trump administration and Pentagon officials have encouraged weapons manufacturers to accelerate production and have sought the participation of other manufacturers, including GM.

A GM–Lockheed partnership would mark a growing trend of automakers like Volkswagen AG and Mercedes-Benz Group AG entering the defense sector as declining global car sales leave manufacturing capacity underused. The move could also help the Pentagon tap into additional U.S. production capability for select programs.

Lockheed Expands Defense Production

Lockheed Martin, the supplier of Thaad missiles, F-35 jet fighters, and Black Hawk helicopters, has been working to expand its defense manufacturing capacity, as evidenced by its new facility in Troy, Alabama. This expansion is expected to nearly double the facility’s production space and create a significant number of new jobs, reflecting Lockheed Martin’s commitment to meeting the demand for munitions supporting America’s arsenal.

On Monday, Lockheed announced a $514 million contract from the U.S. Space Force to build GPS IIIF Space Vehicles 23 and 24, expanding its total commitment under the program to 14 satellites.

General Motors Co. is expanding its energy storage capabilities with new sodium-ion battery chemistry, vehicle-to-grid technology, and data center applications. The automaker aims to address rising energy demands by leveraging its electric vehicle (EV) fleet and developing advanced battery systems. This move aligns GM with competitors like Ford Motor Co. and Tesla Inc. in the energy storage sector.

GM currently has over 250,000 EVs on the road capable of bidirectional charging, a key enabler for vehicle-to-grid programs. The company is working to make this functionality a default feature across its lineup, including models like the Chevrolet Equinox EV and Cadillac Escalade IQ. In partnership with Pacific Gas & Electric Co., GM expects over 52,000 EVs to participate in grid-balancing programs by 2030.

On the stationary storage front, GM is developing sodium-ion batteries, which offer better thermal management and more charge cycles. These batteries are suited for applications where longevity and cost are prioritized over weight. The company is also focusing on battery reuse and recycling through a partnership with Redwood Materials to build a circular battery supply chain.

GM's repurposed battery systems are already being tested in energy company Crusoe's AI data center in Sparks, Nevada. Redwood plans to install approximately 100 repurposed battery packs at a GM plant in Michigan, with a capacity of 1.5 MW/6 MWh. This setup is expected to reduce the site's electricity costs by more than $3 million over the project's life.

Despite scaling back some EV efforts, including suspending the development of the next-generation Chevrolet Silverado EV Pickup truck, GM continues to invest in energy storage. The company previously recorded a $6 billion charge related to EVs, following an earlier $1.6 billion charge. GM also secured a NASA contract to supply battery-electric propulsion for a lunar terrain vehicle.

Key Partnerships and Projects