As Ford steps back from producing large electric vehicles, it is redirecting its battery plans toward a new energy storage business. Instead of canceling battery production, the company will repurpose existing capacity for grid-scale storage systems. These systems will rely on lithium iron phosphate batteries and will support data centers while helping stabilize electricity demand. As a result, Ford aims to extend the value of its battery investments beyond vehicles.
New Business Focus and Manufacturing Strategy
Under this strategy, Ford plans to begin shipping battery storage systems in 2027. At the same time, the company targets 20 gigawatt-hours of annual production capacity. To support this shift, Ford will invest about $2 billion over the next two years. Moreover, the company will reuse manufacturing capacity at its Kentucky facility, where it will produce LFP batteries using licensed technology from CATL. In addition, the site will assemble battery energy storage modules and large containerized systems.
Market Position and Future Expansion
Meanwhile, Ford enters a growing field where other automakers already operate. Tesla continues to deploy large-scale storage systems, while General Motors offers both home and commercial solutions. Initially, Ford will focus on commercial grid customers, while data centers will follow as a secondary market. Over time, the company also plans to introduce residential storage products. Furthermore, the BlueOval Battery Park Michigan facility remains on schedule to produce LFP batteries in 2026. Alongside vehicle applications, that plant will also manufacture smaller cells intended for home energy storage, signaling broader ambitions across the energy ecosystem.
