The automotive giant has formally unveiled Ford Energy, its new battery energy storage subsidiary, alongside the first details of its flagship grid-scale energy storage.
By ESS news
What was first announced in December 2025 has now been formally unveiled. Ford Motor Company has officially launched Ford Energy, a wholly owned subsidiary focused on delivering U.S.-assembled battery energy storage systems (BESS) to utilities, data centers and large industrial and commercial customers across the United States.
The move reflects Ford’s strategy to repurpose underutilized battery production capacity for electric vehicles and focus on “higher return opportunities” in the energy storage sector. The company plans to invest approximately $2 billion over the next two years to scale up the business, targeting an annual deployment of at least 20 GWh, with first customer deliveries expected in late 2027.
Ford Energy’s operations will span the entire battery manufacturing value chain, from battery cell production – including electrode coil production, module and container assembly, to sales and after-sales service.
The company’s flagship product will be the Ford Energy DC Block, a standardized 20-foot containerized battery energy storage system built around 512 Ah lithium iron phosphate (LFP) prismatic cells. As announced Monday, the system will be offered in two configurations: the FE-250, a two-hour system, and the FE-450, a four-hour system. Both integrate liquid-cooled thermal management and an advanced battery management system (BMS) and are designed for a 20-year service life.
While no detailed product specifications or data sheets have yet been released, Ford Energy stated in its initial announcement in December that it plans to produce “advanced battery energy storage systems of 5 MWh or larger.”
To this end, the automotive giant is repurposing existing, underutilized electric vehicle (EV) battery manufacturing capacity in Glendale, Kentucky. Last year, Ford Motor Company, SK On, SK Battery America and BlueOval SK agreed to restructure ownership of their co-developed U.S. battery manufacturing projects, allowing Ford to independently own and operate battery plants in Kentucky.
In addition, Ford plans to use its BlueOval Battery Park Michigan facility in Marshall, Michigan, to produce smaller ampere-hour cells for residential energy storage applications.
“Our manufacturing and supply chain strategy is designed to support evolving regulations for battery energy storage. It aligns with investment tax credit requirements. It also meets material assistance and domestic content standards relevant to network-scale storage,” the company said Monday.
The launch of Ford’s energy storage business is part of “a broader strategy to reallocate capital to areas of stronger customer demand and sustainable profitability.” In doing so, Ford joins a growing list of automakers – including Tesla, Mercedes-Benz and General Motors – expanding into the stationary energy storage market.
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