Ford Launches Energy Subsidiary to Build Data Center-Scale Batteries at Kentucky Plant

Ford Motor Company has officially launched Ford Energy, a new, wholly-owned subsidiary dedicated to manufacturing and selling US-assembled battery energy storage systems. These systems are intended for utilities, large industrial customers, and notably, data centers. The company aims to deploy at least 20GWh of storage capacity annually, with the first customer deliveries projected for late 2027. The creation of Ford Energy and the repurposing of its Glendale, Kentucky plant for this new venture follows the termination of Ford's $11.4 billion BlueOval SK joint venture. Ford Energy's flagship product, the DC Block, is a shipping-container-sized battery system built with LFP prismatic cells, offering configurations with up to 5.45MWh of rated energy capacity. Ford emphasizes domestic manufacturing, positioning its products to qualify for Investment Tax Credits and appeal to customers navigating current policy environments. This strategic pivot by Ford is designed to capitalize on the surging demand for large-scale energy projects, particularly driven by the rapid buildout of AI data centers that are straining grid infrastructure. While entering a competitive market with established players like Tesla, Ford aims to leverage its manufacturing capabilities to provide critical battery storage solutions that can buffer demand spikes. The move is seen as a clever reuse of assets given the recent slump in Ford's EV sales, despite broader concerns about data centers' energy and water consumption.