{"id":67139,"date":"2026-06-30T05:00:00","date_gmt":"2026-06-30T10:00:00","guid":{"rendered":"https:\/\/latamobility.com\/?p=67139"},"modified":"2026-06-22T10:45:50","modified_gmt":"2026-06-22T15:45:50","slug":"ford-bets-on-energy-storage","status":"publish","type":"post","link":"https:\/\/latamobility.com\/en\/ford-bets-on-energy-storage\/","title":{"rendered":"Ford Bets on Energy Storage: $2 Billion and 20 GWH Annually by 2027"},"content":{"rendered":"\n
American automotive company\u00a0Ford Motor Company<\/strong>\u00a0officially announced<\/a><\/strong> the launch of\u00a0Ford Energy<\/strong>, a new wholly owned subsidiary dedicated to the manufacturing and supply of\u00a0Battery Energy Storage Systems (BESS)<\/strong>\u00a0for utilities, data centers, and large industrial and commercial customers in the United States.<\/p>\n\n\n\n This move represents a strategic shift<\/strong> for the iconic automaker, redirecting part of its industrial capacity\u2014originally intended for electric vehicle batteries\u2014toward one of the fastest-growing markets in the energy sector.<\/p>\n\n\n\n The creation of Ford Energy<\/strong> comes amid a broader reconfiguration of the company’s EV strategy. At the end of 2025, Ford<\/strong> reported a $19.5 billion<\/strong> accounting charge and streamlined its electric vehicle assets and product roadmap in the U.S., due to lower-than-expected demand.<\/p>\n\n\n\n Against that backdrop, the company and its partner SK On<\/strong> agreed to dissolve their BlueOval SK<\/strong> joint venture, which had been established in 2021 as part of an $11.4 billion<\/strong> investment plan to build three battery plants in the country.<\/p>\n\n\n\n Faced with a slowdown in automotive battery demand, Ford opted to repurpose that industrial capacity to meet the growing need for dispatchable energy storage.<\/strong><\/p>\n\n\n\n You may also be interested in<\/strong> | Autel, CIEN, Huawei Digital Power, Livoltek, and SynergEV agree that interoperability and financial modularity are key to charging infrastructure in Colombia<\/a><\/strong><\/p>\n\n\n\n Ford<\/strong> confirmed it will invest approximately $2 billion<\/strong> over the next two years to consolidate this new business unit and begin initial commercial deliveries by the end of 2027. The strategy entails deploying at least 20 GWh of annual energy storage capacity<\/strong>, utilizing existing industrial infrastructure within the United States.<\/p>\n\n\n\n Ford Energy<\/strong>‘s operations encompass the complete manufacturing of battery cells, including electrode coating production, module and container assembly, as well as sales and technical support.<\/p>\n\n\n\n The BESS systems will be assembled at Ford<\/strong>‘s repurposed battery manufacturing facility in Glendale, Kentucky<\/strong>, which boasts 4 million square feet<\/strong> of dedicated space. The plant, formerly part of the BlueOval SK<\/strong> joint venture, will be converted to manufacture advanced battery energy storage systems.<\/p>\n\n\n\n The operation is expected to generate approximately 2,100 jobs<\/strong> in the region.<\/p>\n\n\n\n Ford Energy<\/strong>‘s flagship product will be the “Ford Energy DC Block,”<\/strong> a standardized 20-foot containerized energy storage system designed for large-scale applications.<\/p>\n\n\n\n The system is based on 512 Ah prismatic LFP (lithium iron phosphate) cells<\/strong>, a chemistry increasingly used for its lower cost and greater durability compared to other alternatives.<\/p>\n\n\n\n The company will initially offer two configurations:<\/p>\n\n\n\n Both systems integrate highly thermally stable LFP batteries, liquid cooling, and advanced energy management systems, aimed at delivering an estimated 20-year lifespan<\/strong>. Ford<\/strong> highlighted that one of its primary goals is to offer financially reliable solutions for utilities and energy developers seeking bankable and sustainable long-term projects.<\/p>\n\n\n\n “For nearly a year, we have operated quietly to build the foundation of this business. We haven’t just been planning; we have been executing\u2014securing supply chains, preparing our manufacturing sites, and aligning our technology with the enormous demand for domestic energy storage.” The launch of Ford Energy<\/strong> comes at a time of explosive growth<\/strong> in the U.S. energy storage market. The boom in AI-driven data centers, the rise in renewable generation, and the need for electrical grid resilience are driving surging demand for stable, high-capacity storage solutions.<\/p>\n\n\n\n According to industry projections, the global battery storage market is valued at $40.45 billion in 2026** and is expected to grow to **$161.12 billion by 2034<\/strong>, with a compound annual growth rate of 18.86%<\/strong>.<\/p>\n\n\n\n Ford<\/strong> is confident that there is ample room for new players<\/strong> and that its century-long experience in industrial-scale manufacturing gives it a competitive edge<\/strong> over sector startups.<\/p>\n\n\n\n Furthermore, Ford Energy<\/strong> has already secured its first major customer. The company signed a five-year framework agreement with EDF Power Solutions North America<\/strong> for the supply of up to 20 GWh<\/strong> of storage systems. The agreement contemplates Ford<\/strong> supplying up to 4 GWh annually<\/strong> starting in 2028, providing commercial validation<\/strong> of the strategy and bolstering investor confidence.<\/p>\n\n\n\n Lastly, the announcement of the Ford Energy<\/strong> launch was received with enthusiasm. Morgan Stanley<\/strong> valued the new division at $10 billion** and estimated it could generate approximately **$588 million<\/strong> in annual operating profits at full scale.<\/p>\n\n\n\n Initial customer deliveries are scheduled for the end of 2027, and the company is currently in “full execution mode,”<\/strong> preparing its manufacturing capacity and providing solutions to its customers.<\/p>\n\n\n\n The Latam Mobility 2026 Tour<\/strong> will continue in Santiago, Chile, on August 25<\/a><\/strong>, bringing together experts and strategic players to further strengthen the sustainable mobility ecosystem in the region.<\/p>\n\n\n\nInvestment of $2 Billion and 20 GWH Annual Capacity<\/strong><\/h2>\n\n\n\n
<\/figure>\n\n\n\nFlagship Product: The Ford Energy DC Block<\/strong><\/h2>\n\n\n\n
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\u2014 Lisa Drake<\/strong>, President of Ford Energy<\/p>\n\n\n\nData Centers, AI, and Renewables<\/strong><\/h2>\n\n\n\n
<\/figure>\n\n\n\nA Year 2026 of Consolidation for Mobility<\/h2>\n\n\n\n