• Ford Energy will manufacture U.S.-assembled battery energy storage systems for utilities, data centers, and large industrial and commercial customers.
• The subsidiary plans to deploy at least 20 GWh of BESS annually, with first customer deliveries planned for late 2027.
• Ford will repurpose battery manufacturing capacity in Glendale, Kentucky, after scaling back EV plans and dissolving its BlueOval SK joint venture with SK On.

Ford Motor Co. has formally launched Ford Energy, a wholly owned subsidiary that will manufacture battery energy storage systems for utilities, data centers, and large industrial and commercial users. The move gives the automaker a new growth path as U.S. demand rises for storage that can support grid reliability, renewable power, and fast-growing AI data centers.

The company said Ford Energy will provide United States-assembled battery energy storage systems, known as BESS, and aims to deploy at least 20 GWh annually. First customer deliveries are planned for late 2027.

The business has been under development for nearly a year.

“For the better part of a year, we have operated quietly to build a foundation for this business. We haven’t just been planning; we have been executing — securing supply chains, readying our manufacturing sites and aligning our technology with the massive demand for domestic energy storage.”

Kentucky Plant Gets A New Role

Ford Energy will use existing U.S. battery manufacturing capacity in Glendale, Kentucky. The site was previously part of Ford’s BlueOval SK joint venture with SK On, which the companies agreed to dissolve in December after weaker-than-expected EV demand.

The original joint venture was formed in 2021 as part of an $11.4 billion plan to build three large-scale U.S. battery plants. Those facilities were meant to support Ford’s future EV production. However, slower EV sales and the expiration of the federal tax credit reduced the automaker’s need for that additional battery capacity.

Ford is now redirecting part of that infrastructure toward stationary storage. The company previously said it planned to invest roughly $2 billion over two years to establish Ford Energy and begin manufacturing. It also expects to hire about 2,100 workers at the former joint venture battery plant in Kentucky.

For policymakers and investors, the pivot reflects a wider shift in U.S. battery strategy. Battery capacity built for electric vehicles can serve another market where demand is rising quickly: storage for grid-scale and commercial energy loads.

A Domestic Storage Product Built For Bankability

Ford Energy’s operations will include full battery cell manufacturing, including electrode coil production. It will also assemble modules and containers, while offering sales and service support.

The subsidiary’s flagship product will be the Ford Energy DC block, a standardized 20-foot containerized battery energy storage system. It is designed around 512 Ah lithium iron phosphate prismatic cells.

Ford Energy will offer two configurations: the FE-250, a two-hour system, and the FE-450, a four-hour system. Both include LFP prismatic battery technology, liquid-cooled thermal management, and a battery management system.

Ford says the system is designed for predictable lifetime performance, ease of service, and thermal stability. It is also being positioned around a 20-year performance life.

That durability message matters in a market where customers need long-term warranties, insurance, and financing confidence. Energy storage buyers are not just purchasing hardware. They are underwriting decades of operational risk.

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“Utilities and developers need storage systems they can finance, insure and depend on for decades,” Drake wrote in the blog post. “They need suppliers who will be there in year 10 to honor a warranty claim.”

Policy Tailwinds And Data Center Demand

Ford’s manufacturing and supply chain strategy is designed to support a changing U.S. regulatory environment for energy storage. The company said it aligns with Investment Tax Credit requirements and domestic content standards relevant to grid-scale storage.

That policy alignment could become a competitive advantage as developers seek projects that qualify for federal incentives. Domestic content rules are also reshaping procurement decisions across the U.S. clean energy market.

“U.S. demand for dispatchable, bankable energy storage is accelerating,” Drake said in the blog post. “The convergence of data center growth, renewable energy integration, and grid resilience requirements has created a gap in the market.”

The gap is becoming more urgent as AI data centers raise electricity demand in key U.S. regions. Utilities also need storage to manage renewable generation, reduce grid stress, and add flexible capacity.

Ford is not entering an empty field. Tesla is also expanding its energy storage business, including through a $4.3 billion LFP battery cell supply agreement with LG Energy Solution for Megapack systems.

Still, Ford’s entry adds a major industrial manufacturer to the U.S. storage race. For executives and investors, the launch shows how legacy manufacturing capacity can be redirected toward grid infrastructure. It also places domestic battery supply at the center of the next phase of clean energy deployment.

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