Ford is launching a battery storage venture aimed at supplying energy to data centers and supporting the power grid

Ford Launches New Battery Storage Venture Amid EV Strategy Shift

As Ford moves away from producing large electric vehicles, the company is introducing a fresh initiative to utilize its battery manufacturing resources.

On Monday, Ford revealed that rather than abandoning its battery production plans for discontinued EV models, it will redirect those capabilities toward a new energy storage business. These storage solutions, featuring cost-effective lithium iron phosphate (LFP) batteries, are intended to support data centers and help stabilize the electrical grid during periods of high demand.

According to Ford, shipments of these battery storage systems are expected to begin in 2027, with the company targeting an annual output of 20 gigawatt-hours.

Ford is set to invest approximately $2 billion in this new venture over the next two years. The strategy involves converting existing manufacturing lines at its Kentucky facility to produce LFP batteries—using technology licensed from China’s CATL—as well as assembling battery storage modules and 20-foot direct current container systems at the same site.

By entering the battery storage market, Ford joins other automakers who are already active or planning to compete in this sector. Tesla, for example, has been selling battery storage products for over ten years and currently deploys about 10 gigawatt-hours each quarter. General Motors also offers a range of battery storage solutions for both residential and commercial use.

Lisa Drake, Ford’s vice president of technology platform programs and EV systems, explained that the primary focus for the new business will be commercial grid clients. Data centers will also be a significant market, and Ford anticipates eventually offering home energy storage products as well.

“When we engaged with potential customers, it became evident that most preferred LFP prismatic container systems,” Drake told reporters. “Given our existing license to manufacture this technology in the U.S. and our extensive experience in large-scale production, expanding into this area was a logical next step for us.”

Ford also confirmed that its BlueOval Battery Park Michigan facility in Marshall remains on schedule to begin producing LFP batteries in 2026. These batteries, which also incorporate CATL technology, are slated for Ford’s upcoming mid-size electric pickup. Additionally, the Michigan plant will be adapted to manufacture smaller Amp-hour cells for “residential energy storage solutions,” indicating Ford’s ambitions extend beyond commercial applications.

The BlueOval Battery Park Michigan project has seen several changes since its inception. Initially, in February 2023, Ford announced a $3.5 billion investment to build the plant for its expanding electric vehicle lineup. However, construction was paused in September 2023, and two months later, Ford unveiled a revised plan with a reduced production capacity of 20 gigawatt-hours—about 43% less than originally intended.