Ford pivots from EVs to batteries for data centers

Auto manufacturer Ford has unveiled a new subsidiary, Ford Energy, dedicated to the production and sale of batteries for both the electrical grid and data centers. This strategic move, announced Monday, signifies the profound impact of escalating electricity demand on the energy sector. Ford Energy aims to achieve an annual production of 20 gigawatt-hours of batteries, with initial deliveries projected for late 2027. The company will join other automakers like Tesla and GM in supplying batteries to address the increasing need for power and grid storage solutions. Lisa Drake, President of Ford Energy, highlighted in a blog post that the market gap is created by "the convergence of data center growth, renewable energy integration, and grid resilience requirements." The manufacturing operations for these products, intended for utilities, data centers, and large industrial and commercial clients, will take place at Ford's factory in Glendale, Kentucky, a facility originally designated for electric vehicle battery production. The subsidiary's plans encompass the entire battery cell manufacturing process, including electrode coil production, and the assembly of modules and containers.