Why has Ford Launched a Battery Manufacturing Business?

Ford has launched Ford Energy, a wholly owned subsidiary, to manufacture battery energy storage systems (BESS).

The company is repurposing existing US electric vehicle (EV) battery manufacturing capacity in Glendale, Kentucky.

It plans to deploy at least 20 GWh each year with first customer deliveries planned for 2027.

“Ford Energy allows us to maximise the value of our battery manufacturing capabilities,” says Lisa Drake, President of Ford Energy.

“We’re building a business focused first on utility-scale battery energy storage systems for large customers while also offering battery cells for residential energy storage solutions.”

Ford Energy's manufacturing strategy

Instead of building a new factory from the ground up, Ford is repurposing a site in Glendale, Kentucky.

BlueOval SK was a 50/50 joint venture between Ford and SK On that manufactured EV batteries. The Glendale site contains two of three plants that were to be used for this venture.

In December 2025, Ford announced a US$19.5bn strategic reset. The company cancelled plans for next-gen large electric trucks and pure-EV commercial vans, instead shifting its focus to affordable small EVs, hybrids and extended-range electric vehicles (EREVs) that use combustion engines as generators.

The joint venture was then dissolved, with all workers at the Kentucky plant laid off in February 2026.

Now, the facility is home to Ford Energy and will manufacture BESS. 

Agreement with EDF power

EDF power solutions North America, part of EDF group, has already signed a five year framework agreement with Ford Energy.

The agreement gives EDF the ability to procure up to 4 GWh of BESS each year, with a total potential volume of 20 GWh over the agreement's full term. 

Deliveries under this agreement are expected to begin in 2028. 

“As we continue to expand our energy storage portfolio, supply chain reliability and product quality are paramount,” says Tristan Grimbert, CEO of EDF power solutions North America.

“Ford Energy’s commitment to domestic manufacturing and its rigorous approach to traceability and lifecycle support align with the standards we hold across our portfolio.

"This framework agreement gives us the supply visibility and product confidence we need to execute at the pace the energy transition demands.”

Demand for BESS

Advancements in lithium-ion and emerging chemistries have cut average global BESS prices to roughly a third of 2020 levels.

Technologies like data centres and renewable energy, alongside requirements for grid resilience, are boosting demand for BESS around the world. 

In the US, they are expected to see up to 70 GWh of growth in 2026 alone, according to the Solar Energy Industries Association. 

Manufacturing capacity, however, is limited across the supply chain. Wood Mackenzie estimates that US battery cell manufacturing capacity met only around 6% of domestic demand in 2025.

Ford Energy's products

Ford Energy's flagship product is the DC Block, designed for utility-scale applications.

These include frequency regulation, voltage support, energy arbitrage, peak load shifting, demand response, backup power and microgrid integration.

The Block is a standardised, 20-foot containerised energy storage system with capacity of 5.45 MWh per unit.

The system uses 512 Ah lithium iron phosphate (LFP) prismatic cells and is available in two hour and four hour discharge configurations, with an operating voltage range of 1,040–1,500 VDC and integrated liquid-cooled thermal management.