Ford Enters the Energy Market with New Battery Business Amid Tesla Sales Surge

Ford is making a significant move in the energy sector with the establishment of Ford Energy, a new subsidiary focused on producing battery energy storage systems (BESS). This initiative, fully owned by the American car manufacturer, aims to contribute at least 20GWh of annual energy storage capacity in the United States. The first customer installation is scheduled to take place by late 2027.

While Ford Energy is targeting industrial and commercial clients in the US, it’s worth noting that Ford Australia has not yet confirmed plans to sell these battery systems locally. The company emphasizes that its BESS products will be “United States assembled,” indicating a focus on local production rather than strict US manufacturing.

The core product of Ford Energy will be the Ford DC Energy Block, a 20-foot battery energy storage system utilizing 512Ah liquid-cooled lithium iron phosphate (LFP) prismatic cells. Two versions will be offered: the FE-250 (two-hour) and FE-450 (four-hour) systems, designed to operate for a lifespan of 20 years.

Final assembly of these systems will take place at Ford’s Glendale, Kentucky battery plant, which has been repurposed to focus on BESS production rather than electric vehicles (EVs). This strategic decision aligns with the growing demand for energy storage solutions driven by factors such as data center expansion, renewable energy integration, and grid resilience requirements.

The US Energy Information Administration (EIA) reports a significant surge in battery storage adoption in the US, with over 40GW of battery storage capacity added in the last five years. This trend underscores the increasing importance of energy storage solutions in the transition towards a more sustainable energy landscape.

In Australia, a record number of home batteries were installed in 2025, supported by initiatives like the Cheaper Home Batteries Program. This growth led to Tesla generating more revenue from its energy products, including home batteries, than from its popular EV models like the Model Y and Model 3.

Ford’s EV strategy has seen shifts, with the discontinuation of the F-150 Lightning EV last year. The company plans to introduce an extended-range electric vehicle (EREV) in its place. Additionally, Ford is gearing up to launch a new family of vehicles based on the Universal EV platform, starting with a Ranger-sized ute expected in 2027. These Universal EVs will feature a 400V electrical architecture and LFP batteries, reflecting Ford’s commitment to innovation in the EV space.

CEO Jim Farley’s comments on learning from Tesla’s approach highlight Ford’s evolving mindset towards electric mobility. By embracing new design paradigms and manufacturing efficiencies, Ford aims to deliver more affordable and sustainable EV options to consumers.

In conclusion, Ford Energy’s foray into battery energy storage systems marks a significant step towards enhancing energy resilience and sustainability. As the automotive industry continues to evolve, Ford’s strategic investments in energy storage solutions underscore its commitment to innovation and environmental stewardship. Transform the following sentence: “The cat chased the mouse around the house.”

Into: “Around the house, the mouse was chased by the cat.”