Ford has signed a five-year agreement with EDF Power Solutions North America for battery storage supply, marking a significant step into the energy storage market. The contract allows EDF to procure up to 4 gigawatt-hours of Ford’s DC Block battery storage systems annually, totaling up to 20 gigawatt-hours over the contract period. Deliveries are slated to begin in 2028, with potential broader production starting as early as late 2027.
This deal highlights Ford Energy’s aspirations to diversify beyond vehicle sales, with plans to invest nearly $1.5 billion into its energy division by 2026 and target 20 gigawatt-hours of battery storage capacity by 2027. Ford aims to leverage its battery manufacturing capabilities amid a slowing electric vehicle demand, while competitors like General Motors and Tesla enhance their own energy initiatives.
Ford’s share prices have risen 5% in the past six months, although they still lag behind competitors in the broader industry and against GM. Despite a positive long-term outlook facilitated by the EDF deal, Ford’s energy venture remains in its infancy, and the ongoing struggles in its EV sector, including a reported $777 million EBIT loss, may temper investor enthusiasm.
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