I have read that 5/8" sheetrock is required by many city/county code on house side of attached garage for fire resistance - true or false at OP's location? Permit and inspection required?
If none of the above applies, plywood is fantastic for walls. You can mount/hang just about anything on it, better than slatwall systems because you can just make your own custom system for a lot less money (such as French cleats).
I live in California where everything is illegal/not allowed/requires a permit/over-regulated/taxed excessively/inspected by different inspectors who interpret codes differently/installation only allowed by licensed installers/may require approval by neighbors and 8 random strangers in two different states, city council, and HOA at the
same time but only when the moon is full. Had two different remodeling projects that had problems with inspectors. Felt sorry for the contractors, they jumped through a lot of hoops to keep the inspectors happy, then a new inspector showed up and wanted a few
more things changed. Sorry for the rant, just don't want the OP to have problems after he has spent his money and time on his project.
