Ford Repurposes EV Battery Capacity for New Energy Storage Venture 

Ford Energy will leverage existing battery manufacturing assets to deliver large-scale energy storage solutions for utilities, data centers, and industrial customers. 

Ford Motor Company has officially launched Ford Energy, a new business unit dedicated to developing battery energy storage systems (BESS) for utilities, hyperscale data centers, and large industrial and commercial customers across the United States. The move marks a significant expansion of Ford’s electrification strategy beyond electric vehicles into large-scale energy infrastructure.

The new division follows Ford’s earlier decision to reassess parts of its EV strategy after recording a $19.5 billion charge linked to EV-related assets and product planning adjustments amid slower-than-expected electric vehicle demand. By establishing Ford Energy, the company plans to repurpose existing U.S. battery manufacturing capacity to serve the rapidly growing energy storage market, where demand is rising due to data center expansion, increasing renewable energy integration, and grid reliability requirements.

According to Lisa Drake, President of Ford Energy, the company has spent nearly a year quietly building the operational foundation for the business. This included securing supply chains, preparing manufacturing facilities, and aligning technology platforms to meet accelerating domestic demand for dispatchable energy storage solutions.

Ford Energy’s operations will span the full battery value chain, covering cell production, module assembly, container integration, and after-sales services. Manufacturing will take place at Ford’s repurposed battery facility in Glendale, Kentucky, where roughly 4 million square feet of space has been allocated for energy storage production.

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The company aims to deploy at least 20 GWh of storage capacity annually, with initial deliveries expected to begin in late 2027. To scale the business, Ford plans to invest approximately $2 billion over the next two years.

With Ford Energy, the automaker is leveraging its battery expertise to enter the fast-growing stationary storage sector, positioning itself as a key player in supporting renewable energy growth and modernizing U.S. power infrastructure.

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Nikita Kumari
Nikita Kumari
Nikita Kumari is a Journalist at EFY. She decodes deals, investments, and policy shifts, redefining the semiconductor and tech landscape.

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