Ford is hitting the accelerator on a whole new kind of horsepower — battery energy storage. The American auto giant has officially launched Ford Energy, a wholly owned subsidiary that will build large-scale battery storage systems for data centers, utilities, and big industrial customers across the United States. And it’s not a small side project: the company is aiming to deploy at least 20 gigawatt-hours of storage systems every year, with the first deliveries set for late 2027.
From EV Batteries to Grid-Scale Power
The move comes after Ford scaled back some of its electric vehicle plans. Instead of letting a state-of-the-art battery plant in Glendale, Kentucky, sit underutilized, Ford is repurposing the facility to manufacture advanced stationary energy storage systems. The factory was originally part of the BlueOval SK joint venture with South Korean battery maker SK On — a partnership that dissolved last year when EV demand didn’t grow as quickly as expected. Now Ford is pouring roughly $2 billion into transforming the site and expects to hire around 2,100 workers.
Ford Energy will handle everything from making electrode coils and assembling battery modules to building complete containerized systems, along with sales and service support. Heading the unit is Lisa Drake, who was named president of Ford Energy in January and reports directly to Ford Vice Chair John Lawler.
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Why Energy Storage, and Why Now?
Demand for reliable, utility-scale batteries is surging. The explosive growth of AI data centers, the need to integrate more renewable energy, and the pressure to strengthen ageing power grids have created a massive gap in the market. Ford sees a chance to enter a space where customers want partners that can stand behind their products for decades — not just a few years.
“Utilities and developers need storage systems they can finance, insure and depend on for decades,” Drake wrote in a blog post. “They need suppliers who will be there in year 10 to honor a warranty claim.”
The Flagship Product: Ford Energy DC Block
At the heart of the lineup is the Ford Energy DC block — a standardized, 20-foot industrial-grade battery energy storage system. It packs 512 amp-hour lithium iron phosphate (LFP) prismatic cells and will come in two variants:
- FE-250: a 2-hour duration system
- FE-450: a 4-hour duration system
Both versions use liquid-cooled thermal management and advanced battery management systems, and they’re designed for a 20-year service life. That kind of longevity, combined with Ford’s century-plus manufacturing track record, is the automaker’s pitch to a market that’s tired of short-lived solutions.
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The Bigger Picture: Automakers Pivot to Storage
Ford isn’t alone in spotting the opportunity. Tesla continues to ramp up its Megapack energy storage business and recently struck a $4.3 billion deal with LG Energy Solution for LFP prismatic cells to power its next-generation Megapack 3 systems. Production is expected to start in 2027 at LG’s Michigan plant, with the finished units rolling out of Tesla’s Houston facility.
And in April, EV startup Rivian teamed up with battery recycling firm Redwood Materials to deploy a second-life energy storage system at its Illinois assembly plant. More than 100 used Rivian battery packs will be repurposed into a 10 megawatt-hour storage unit that helps power the factory — a clever circle-of-life story for EV batteries.
What This Means for the Energy Landscape
Ford Energy’s entry signals that the line between auto manufacturing and grid infrastructure is blurring fast. As EV battery technology matures and factories gain scale, automakers are in a unique position to serve a booming stationary storage market. For Ford, it’s a way to create a new revenue stream, safeguard jobs, and put its Kentucky plant back to work — all while helping the U.S. build a more resilient, cleaner grid.
For consumers, the impact might not be immediately visible under the hood, but if your lights stay on during a heatwave or a data center keeps your cloud apps running smoothly, a Ford Energy battery block could be silently doing its job behind the scenes.
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Sapna is the storytelling powerhouse of the team. With a sharp eye for detail and a knack for uncovering the human interest side of automobiles, she covers everything from industry launches to feature stories. She believes that every car has a story and every rider has a journey. Her writing is known for its clarity, depth, and ability to connect with the common man.