Two new sizes are joining the already existing 1TB option.
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Segate and Microsoft just announced that there are two additional options coming that will offer additional storage space for Xbox Series X|S owners. Near the launch of the console, Seagate released their 1TB Seagate Storage Expansion Card. Soon, they will offer a 512GB Storage Expansion Card and a 2TB Storage Expansion Card to consumers.

the Seagate 512GB Storage Expansion Card is currently available for pre-order from Walmart in the United States for $139.99 (USD). This card will launch in mid-November.

The Seagate 2TB Storage Expansion Card will open up pre-orders in November for $399.99, with a launch slated for early December. This 2TB offering will be given the "Designed for Xbox Limited Series" badge that apparently means "premium product quality, performance, and design." Sounds akin to the Nintendo Seal of Approval to me.

These expansion cards are designed to just be plugged into the back of the console. You can use it as you would any other external storage solution. You can play games from it, move or copy games to and front it, and it has the benefit of being portable.