In a significant strategic shift, American automotive giant Ford Motor Company is accelerating into the high-stakes arena of artificial intelligence infrastructure. The company has announced a major plan to repurpose its existing electric vehicle (EV) battery manufacturing capacity to produce large-scale battery energy storage systems, specifically targeting the surging power demands of AI data centres and aiming to support the broader electric grid.
Ford's $2 Billion Pivot to Power the AI Boom
The cornerstone of this new venture is a substantial financial commitment. Ford plans to invest approximately $2 billion over the next two years to scale this business. The automaker will leverage its underutilised EV battery manufacturing facility in Glendale, Kentucky, converting it to serve the rapidly growing battery energy storage systems (BESS) market. This move is designed to create a new and profitable revenue stream for the company.
Ford's storage solutions will be built using cost-effective lithium-iron phosphate (LFP) batteries. These systems are tailor-made for data centres, which are the backbone of AI computational tasks and consume vast amounts of electricity. By providing on-site or near-site energy storage, Ford's technology can help stabilise the power supply for these critical facilities and alleviate strain on the public grid.
Manufacturing Scale and Timeline for Deliveries
The company has outlined an ambitious production roadmap. The converted Kentucky plant will manufacture advanced battery energy storage systems with a capacity of 5 Megawatt-hours (MWh) or more. The facility will produce LFP prismatic cells, BESS modules, and 20-foot DC container systems.
Leveraging licensed technology from Chinese battery-cell leader CATL, Ford aims to bring initial capacity online within 18 months. The long-term goal is even more impressive: Ford plans to deploy at least 20 Gigawatt-hours (GWh) of annual battery storage capacity by late 2027. Customer deliveries for these energy storage solutions are expected to commence in 2027.
In a related development, Ford confirmed a restructuring of its battery joint ventures. A Ford subsidiary will now independently own and operate the Kentucky battery plants, while partner SK On will fully own the Tennessee plant. Separately, Ford's BlueOval Battery Park in Marshall, Michigan, will focus on producing smaller cells for residential energy storage and will begin making LFP cells in 2026 for Ford's upcoming electric trucks.
Joining the Automotive Energy Storage Race
With this move, Ford enters a competitive energy storage sector where other automakers have already established a presence. Its primary rival is Elon Musk's Tesla, which has been selling energy storage products like Powerwall and Megapack for a decade and is currently installing around 10 GWh every quarter. General Motors (GM) also offers a range of energy storage devices for home and commercial use.
Ford's strategic pivot underscores a broader industry trend where traditional car manufacturers are leveraging their battery and manufacturing expertise to capitalise on the parallel explosion in renewable energy and data centre infrastructure. By addressing the critical energy needs of the AI revolution, Ford is positioning itself not just as a future mobility company, but as a key player in the foundational technology powering the digital age.
