Ford is starting a battery storage business to power data centers and the grid

Ford is expanding into the energy sector with the announcement of a new battery storage venture to power data centres and support grid demand. As the automaker pivots away from producing large electric vehicles, Ford is repurposing its battery production capacity to create storage systems using lithium iron phosphate (LFP) batteries.

This move is part of a broader strategy to capitalise on the growing demand for energy storage solutions. Ford plans to build 20 gigawatt-hours (GWh) of annual capacity, with production expected to begin in 2027. The company will invest around $2 billion over the next two years to support the development of this new business. The batteries will be manufactured at Ford's Kentucky facility, which will be repurposed to produce energy storage systems, including 20-foot DC container systems.

The new venture aligns with Ford's ongoing commitment to renewable energy solutions and plays into the growing trend of automakers entering the energy sector. Tesla has been a leader in battery storage products, and General Motors has also started offering battery storage solutions for homes and businesses.

Ford's Vice President, Technology Platform Programs and EV Systems, Lisa Drnotedioned that the primary focus for the new battery storage products would be commercial grid customers. Data centres and residential energy storage products are also part of the plan, although on a smaller scale.

Additionally, Ford's Blue Origin BatFord 'sarkMichigan will produce LFP batteries for Ford's electric vehicles. Ford will also make smaller Amp-hour cells for residential energy storage solutions. This suggests Ford's ambitions extend beyond commercial applications, indicating an interest in residential battery storage products.

The new battery storage initiative is part of a broader restructuring of Ford's electric vehicle business, which is also shifting focus to smaller, more profitable EVs. With the rise of LFP battery technology and the demand for energy storage, Ford is positioning itself as a key player in the future of energy solutions.