Ford launches Ford Energy subsidiary to build 20 GWh of battery storage annually
Ford has launched Ford Energy, a new subsidiary to produce 20 GWh of battery energy storage annually from its Kentucky gigafactory, targeting utilities, data centers, and industrial clients. The move shifts focus from EV battery overcapacity to a growing grid-scale storage market, with first deliveries planned for late 2027.
Ford has introduced Ford Energy, a wholly owned subsidiary dedicated to manufacturing and selling U.S.-made battery energy storage systems (BESS) for utilities, data centers, and large industrial customers. The company will produce 20 GWh of energy storage annually from its Kentucky gigafactory, repurposing a facility originally built for EV battery production under the now-defunct BlueOval SK joint venture. The initiative follows Ford’s pivot from EV battery overcapacity, as demand for electric vehicle batteries failed to absorb the company’s production capacity. Ford Energy President Lisa Drake confirmed the subsidiary has spent over a year preparing, securing supply chains and adapting manufacturing sites to meet rising domestic energy storage demand. Ford Energy’s flagship product is the DC block, a containerized system built around 512 Ah LFP prismatic cells. Two models, the FE-250 (two-hour system) and FE-450 (four-hour system), each offer 5.45 MWh of capacity, operate in extreme temperatures (-35°C to +55°C), and feature corrosion-resistant, liquid-cooled thermal management. Each unit weighs 43.5 tonnes and fits a standard 20-foot shipping container. The company emphasizes its use of lithium iron phosphate (LFP) chemistry, known for thermal stability and long cycle life, targeting a 20-year performance lifespan. Ford aims to compete in a rapidly expanding market, where Tesla currently dominates with 46.7 GWh deployed in 2025 and plans to produce 50 GWh annually with its Megapack 3. The U.S. energy storage market is projected to grow significantly, with 24 GW of new utility-scale battery storage expected in 2026—nearly double the 2025 record. AI data center expansion and renewable energy integration are driving demand, while Ford’s 20 GWh annual target positions it as a key player despite Tesla’s larger production capacity. First customer deliveries are scheduled for late 2027, marking Ford’s entry into a high-growth sector with substantial long-term potential.
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