Ford Motor Company is pivoting from its electric vehicle (EV) manufacturing to focus on battery energy storage systems (BESS) as demand for data center power solutions surges. Previously, the company wrote down $19.5 billion from its EV program last year, reflecting a shift in strategy following changing consumer preferences and policy rollbacks.
In May, Ford launched Ford Energy, a subsidiary dedicated to producing utility-scale BESS. The company plans to invest $2 billion to repurpose its Glendale, Kentucky facility, originally set up for an EV battery venture with SK On. The Ford Energy DC Block, a 5.45-megawatt-hour storage system using lithium iron phosphate chemistry, will be produced to help power data centers, ensuring a consistent electricity supply.
Ford aims to manufacture and deploy 20 gigawatt-hours of energy storage capacity annually, with its first shipments expected in 2027. The company has also entered a five-year partnership with EDF Power Solutions, potentially worth up to $4 billion, to supply its systems for data center applications.
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