Ford launches battery storage business, repurposing EV manufacturing capacity
Source：pv magazine
Ford is repurposing underutilized electric vehicle battery capacity and pivoting toward “higher-return opportunities” in the energy storage sector. The automotive giant said Monday it will invest roughly $2 billion in the next two years to scale the new business.
Initial production is expected to come online within 18 months, supported by Ford’s manufacturing expertise and licensed battery technology. By late 2027, the company aims to deploy at least 20 GWh of energy storage annually.
Ford expects the new business – including sales and service – to capture growing demand for battery energy storage from data centers and grid-supporting infrastructure. To that end, the company plans to repurpose existing, underutilized US battery manufacturing capacity in Glendale, Kentucky.
The Kentucky facility will be converted to manufacture advanced battery energy storage systems of 5 MWh or larger. Ford plans to produce LFP prismatic cells, BESS modules, and 20-foot DC containerized systems at the site, targeting customers across data centers, utilities, and large-scale industrial and commercial markets.
Last week, Ford, SK On, SK Battery America, and BlueOval SK entered into a joint venture disposition agreement. Under the terms of the deal, a Ford subsidiary will independently own and operate the Kentucky battery plants, while SK On will fully own and operate the Tennessee battery facility.
Separately, Ford will use its BlueOval Battery Park Michigan in Marshall, Michigan, to manufacture smaller-amp-hour cells for residential energy storage solutions. The plant remains on track to begin producing LFP prismatic battery cells in 2026 to power Ford’s upcoming midsize electric truck – the first model built on the company’s new Universal EV Platform, the company said in the press release.
The launch of Ford’s energy storage business is part of a broader strategy to redeploy capital toward areas of stronger customer demand and sustainable profitability. As part of this shift, Ford said it no longer plans to produce certain larger electric vehicles where the business case has weakened due to softer demand, high costs, and evolving regulatory conditions.
“This is a customer-driven shift to create a stronger, more resilient, and more profitable Ford,” said President and CEO Jim Farley. “The operating reality has changed, and we are redeploying capital into higher-return growth opportunities: Ford Pro, our market-leading trucks and vans, hybrids, and high-margin opportunities like our new battery energy storage business.”
The potential upside of energy storage is most clearly illustrated by Tesla. After years of negative margins, Tesla’s energy division has become a key driver of profitability. By August 2025, the segment accounted for 23% of Tesla’s total profit while generating just 13% of revenue, lifting the company’s overall margins by nearly two percentage points.
Other automakers are following a similar path. Mercedes-Benz Energy has developed stationary battery storage systems – primarily for commercial and industrial customers -based on repurposed vehicle batteries. General Motors has also manufactured energy storage products and explored supplying both new and used EV batteries for large-scale stationary storage through partnerships, including with Redwood Materials, as part of its broader energy storage strategy.