Ford Launches New Battery Storage Business, Targets Data Center Demand December 16, 2025 In a significant move that bridges the automotive and digital infrastructure sectors, Ford Motor Company has announced the launch of a dedicated Battery Energy Storage System (BESS) business unit. This strategic pivot is a direct response to the soaring energy demands and sustainability pressures facing the global data center industry, positioning the legacy automaker to become a key supplier of backup and grid flexibility solutions. According to an initial report by The Register, Ford plans to leverage its existing manufacturing plants in Glendale, Kentucky, and Marshall, Michigan, to produce these systems. The company stated it will invest approximately $2 billion into the venture, aiming to create a new revenue stream by repurposing underutilized electric vehicle battery production capacity. The Kentucky facility will be specifically converted to manufacture advanced BESS units with a capacity of over 5 megawatt-hours (MWh) each, explicitly targeting the data center sector. Shipments are scheduled to commence in 2027, with an ambitious planned annual production capacity of 20 gigawatt-hours (GWh). The decision to enter the energy storage market is partly driven by challenges in Ford's core electric vehicle business, particularly slower-than-expected sales of large EV models. By pivoting a portion of its battery manufacturing to stationary storage, Ford is diversifying its industrial base. The Michigan plant will focus on producing cells for residential energy storage products, indicating a bifurcated market approach. For the data center industry, the entry of a major industrial manufacturer like Ford represents a substantial boost to the supply chain for critical power infrastructure. Battery storage systems are increasingly viewed not just as backup solutions but as tools for managing energy costs, integrating renewable power, and providing grid services. This trend is already visible, with companies like Aligned Data Centers partnering with firms like Calibrant to deploy BESS units at their facilities. Furthermore, tech giants such as Google are exploring longer-duration storage technologies, signaling a broad industry shift beyond traditional diesel generators. Ford's large-scale entry could accelerate adoption, improve economies of scale, and provide data center operators with more robust and potentially cost-effective options for ensuring power resilience and meeting sustainability goals. Source: datacenterdynamics
Ford Launches New Battery Storage Business, Targets Data Center Demand
