Ford launches a new stationary battery energy storage business

Ford has announced the launch of a new subsidiary, Ford Energy, marking its entry into the stationary battery energy storage market. The company aims to supply battery energy storage systems (BESS) to utilities, data centres, and large industrial and commercial clients across the United States. This move follows a growing trend among electric vehicle manufacturers, such as Tesla and BYD, who have diversified into stationary battery solutions amid rising demand driven by the expanding data centre industry. Ford Energy’s flagship product, the Ford Energy DC block, is a containerised 20-foot battery storage system built around lithium iron phosphate (LFP) prismatic cells. The system will be available in two configurations: a two-hour FE-250 and a four-hour FE-450, both featuring liquid-cooled thermal management and advanced battery management technology. To support production, Ford plans to repurpose its former battery manufacturing plant in Glendale, Kentucky, with an ambitious target to deploy at least 20 gigawatt-hours annually, aiming for initial customer deliveries by late 2027. The company highlights its industrial expertise and long-standing manufacturing heritage as key advantages in the BESS market, emphasising the importance of reliability and long-term warranty support for utility and developer customers. Ford’s entry into this sector comes at a critical time, as the rapid growth of data centres presents both environmental challenges and economic risks. While the data centre boom may strain global climate efforts and local communities, it also offers a potential growth avenue for legacy automakers facing declining internal combustion engine markets. This strategic pivot could allow Ford and other traditional US automakers to leverage existing industrial assets and supply chains, repurposing factories and diversifying their product portfolios beyond automotive manufacturing. As the global EV market becomes increasingly competitive and dominated by Chinese manufacturers, Ford’s move into stationary battery storage may provide a valuable alternative revenue stream and a foothold in the evolving energy landscape. The success of Ford Energy will depend on its ability to scale production and meet the reliability demands of large-scale energy storage customers.