GE Vernova’s unit, set to be spun off in Q2 2024, focuses on reliable and sustainable energy as the fragile U.S. power grid is increasingly burdened. It recently signed a deal with ONE Next Energy, a maker of lithium iron phosphate cells for energy storage. GE Vernova is also focusing on vehicle-to-grid technologies, which send power from EVs back to the grid.
General Electric’s NYSE: GE Vernova unit- to be spun off early in the second quarter of 2024, has been putting together the pieces of a lithium-battery business with implications for not only EVs, but the entire power grid. In mid-November, GE Vernova inked a deal with Michigan-based energy storage company One Next Energy for lithium iron phosphate (LFP) cells for GE Vernova’s Solar & Storage Solutions installations throughout the U.S. According to GE Vernova, when combined with renewable energy generation, energy storage solutions help provide uninterrupted access to power throughout the day by storing excess energy and releasing it during periods of low generation or high demand. Energy storage is key to stabilizing the grid. In addition, it unlocks 100% renewable energy to power factories, communities, hospitals, and data centers,” said Mujeeb Ijaz, founder and CEO at ONE, in a release announcing the partnership. While the partnership between GE Vernova and ONE is focused on storage for the grid, a much-needed boost to the U.S. infrastructure system, LFP batteries have applications in the EV business. For example, General Motors NYSE: GM has invested in Mitra Chem, a California start-up developing lower-cost LFP batteries for EVs. The LFP batteries are manufactured without expensive components such as nickel and cobalt, driving their costs down versus lithium-ion cells typically used in EVs. Already, Tesla Inc. NASDAQ: TSLA, Ford Motor Co. NYSE: F and Rivian Automotive Inc. NASDAQ: RIVN are using LFP cells in their lower-cost EV models. However, a car requires more LFP than lithium-ion cells, meaning they’re not quite ready for prime time. On the flip side, the LFP cells that both GE and GM are developing with their respective partnerships have the advantage of being U.S.-made. That means they qualify for U.S. tax subsidies, something GE touted in its announcement of the deal with ONE.
GE Vernova has been launching other initiatives aimed at bolstering the power grid, which also have implications for EVs. In August, it acquired Norway-based Greenbird Integration Technology, which makes data integration software for power grids. It’s another piece of the puzzle when it comes to utilities keeping the power on in a storm, overload, accident or other situation. According to GE Vernova, the acquisition will expand the capabilities of the company’s GridOS software portfolio, which pulls together energy usage data, network modeling, and AI-driven analytics from across the grid.
“Integration of data from multiple sources like charging stations as well as operations, forecasting, billing, and other systems can support the success of future use cases such as vehicle-to-grid (V2G) while keeping the grid safe,” said GE Vernova when it acquired Greenbird. Vehicle-to-grid technologies allow energy to be pushed back to the power grid from an EV battery. When GE Vernova is spun off next year, it may be categorized among technology stocks in the Technology Select Sector SPDR Fund NYSEARCA: XLK, which is home to solar energy companies. The spinoff’s main purpose is to supply reliable and sustainable energy, no small task for an aging U.S. power grid that’s already under stress. That’s why innovations such as V2G could be important as a way of creating new power sources. The technology is only in the testing phase right now, but in addition to its acquisition of Greenbird, GE Vernova is pursuing other initiatives to advance V2G. For example, it recently partnered with a Brooklyn, New York company, Energy Hub, to manage distributed energy resources.
