Ford has announced a new business move as it steps back from producing large electric vehicles. Instead of abandoning plans to make batteries for those vehicles, the company said it will use the same battery capacity to enter the battery storage market. These battery systems will help power data centres and support the electricity grid by storing energy and releasing it when demand is high.
The new battery storage systems will use lithium iron phosphate (LFP) batteries, which are cheaper and widely used for large-scale energy storage. Ford said production will begin in 2027, with a target of building 20 gigawatt-hours of battery storage capacity each year. The company plans to invest about two billion dollars in the project over the next two years, using existing manufacturing facilities at its Kentucky plant.
Ford explained that the main customers for this new business will be commercial grid operators, while data centres will be another key market. Over time, the company also plans to offer battery storage products for homes. The batteries will be produced using technology licensed from China’s CATL, combined with Ford’s long-standing experience in large-scale manufacturing.
This move places Ford alongside other automakers already active in battery storage, such as Tesla and General Motors. Ford also confirmed that its BlueOval Battery Park in Michigan remains on track to start battery production in 2026. While the factory was initially planned solely for electric vehicles, Ford said it will now also produce smaller batteries for home energy storage, showing that the company’s energy plans go beyond cars alone.