Ford is switching some battery focus from cars to data centers - with plans for huge 20GWh capacity

• Ford pauses electric pickup production as consumer demand fails to meet expectations
• Range-extended trucks replace pure electric models in Ford’s revised vehicle strategy
• Battery factories shift focus from vehicles to large-scale energy storage systems

Ford has halted production of its F-150 Lightning vehicle in favor of reassigning workers to assemble gasoline and hybrid trucks.

This change in vehicle strategy is being mirrored by changes in battery manufacturing plans, as Ford has confirmed that it will convert the Kentucky battery facility to produce prismatic lithium iron phosphate cells after ending its SK On joint venture.

These cells are not intended for passenger vehicles but are designed for stationary, large-scale energy storage systems instead.

Battery plants redirected toward stationary storage

Ford says the chemistry fits data center use, where lower costs, long service life, and safety outweigh priorities around high energy density.

The Kentucky plant is expected to begin production within 18 months and eventually reach an annual capacity of 20GWh.

Rather than abandoning excess battery capacity, Ford is forming a standalone battery storage business.

The company plans to invest roughly $2 billion over the next two years to manufacture LFP cells, modular storage units, and containerized systems.

Shipments are expected to begin in 2027, with Ford framing the move as a response to rising demand from commercial grid operators.

Ford will enter a market that already includes players such as Tesla and General Motors, both of which offer residential and commercial energy storage products.

Ford’s BlueOval Battery Park Michigan remains on schedule to begin LFP battery production in 2026, using technology licensed from CATL.

These batteries are still intended for a future mid-sized electric truck, although the factory’s planned output has already been reduced from earlier targets.

Ford has also added plans to produce smaller-capacity cells for residential energy storage systems at the same site.

Ford’s recent decisions suggest caution around near-term demand for large electric trucks, along with a belief that stationary storage may offer steadier returns.

The company is now prioritizing lower-cost models, conventional hybrids, and range-extended electric vehicles, which it believes better match current buyer expectations.

Via Ars Technica

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