Ford Motor Company is making a major pivot into the booming energy storage market, announcing a plan to invest $2 billion to convert its Glendale, Kentucky, electric vehicle battery plant into a dedicated hub for manufacturing large-scale battery energy storage systems (BESS) for data centers and the grid.
In a strategic shift reflecting evolving market demands, Ford Motor Company is betting big on battery storage. The automaker has revealed plans to repurpose its existing EV battery manufacturing capacity in Kentucky to produce massive battery systems aimed at power-hungry data centers and utilities. This move comes as the company seeks new avenues for its battery investments amidst a cooling EV sales pace.
The cornerstone of the plan is the conversion of the Glendale, Kentucky, facility. Over the next two years, Ford will invest approximately $2 billion to retool the site. The goal is to manufacture advanced battery energy storage systems larger than 5 megawatt-hours, including LFP prismatic cells, BESS modules, and 20-foot DC container systems. These are the industrial-scale units critical for backup power and grid stability.
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“This is wise,” commented Electrek in its analysis of the move, highlighting Ford’s strategy to monetize its battery investment in adjacent markets. The company aims to bring initial production online within 18 months and scale to an annual deployment of at least 20 gigawatt-hours of storage by late 2027.
This pivot follows a recent restructuring of Ford’s battery joint ventures. A disposition agreement between Ford, SK On, SK Battery America, and BlueOval SK means a Ford subsidiary will now independently own and operate the Kentucky plants. Meanwhile, SK On will fully control the Tennessee battery plant. This separation gives Ford the flexibility to redirect its Kentucky assets.
The strategy isn’t limited to giant data center blocks. Ford is also planning a separate energy storage play in Michigan. At BlueOval Battery Park Michigan in Marshall, the company will produce smaller LFP prismatic cells designed for residential energy storage systems. That plant remains on track to begin manufacturing in 2026 and will also supply batteries for Ford’s upcoming midsize electric truck.
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Industry observers see this as a pragmatic response to market signals. “With tax credits eliminated and regulatory uncertainty, Ford is pivoting to adjacent markets, including grid-scale and residential energy storage, to keep its battery plants running and justify billions in sunk investment,” noted Electrek’s report. The exploding energy demands of AI and cloud computing are creating a voracious market for reliable, large-scale storage, a sector potentially less volatile than the consumer EV market in the near term.
For Ford, this represents a dual-path strategy: continuing its EV development on a new platform while aggressively capturing share in the parallel and surging energy infrastructure market. It’s a bet that the future of energy isn’t just on the road, but in the vast server farms and electrical grids that power modern life.
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