How is Ford Repurposing an Idle EV Battery Facility?

The automotive manufacturer has transformed an idle electric vehicle battery facility into a utility-scale BESS production site and secured a multi-year supply agreement with EDF power solutions North America.

Ford has established Ford Energy as a wholly owned subsidiary to manufacture battery energy storage systems.

The company is converting an existing US electric vehicle battery manufacturing facility in Glendale, Kentucky to produce utility-scale energy storage products. Ford plans to deploy at least 20 GWh each year with first customer deliveries scheduled for 2027.

"Ford Energy allows us to maximise the value of our battery manufacturing capabilities," says Lisa Drake, President of Ford Energy.

"We're building a business focused first on utility-scale battery energy storage systems for large customers while also offering battery cells for residential energy storage solutions."

The move could show how automotive manufacturers are adapting supply chain infrastructure to meet growing demand for grid storage technology.

Repurposing existing manufacturing capacity

Ford is converting a facility in Glendale, Kentucky, rather than constructing new manufacturing infrastructure. BlueOval SK was a 50/50 joint venture between Ford and SK On that manufactured electric vehicle batteries. The Glendale site contains two of the three plants that were planned for this venture.

In December 2025, Ford announced a US$19.5bn strategic reset. The company cancelled plans for next-generation large electric trucks and pure electric vehicle commercial vans, instead shifting its focus to affordable small electric vehicles, hybrids and extended-range electric vehicles that use combustion engines as generators.

The joint venture was then dissolved, with all workers at the Kentucky plant laid off in February 2026. The facility is now home to Ford Energy and will manufacture battery energy storage systems.

The approach could mean reduced capital expenditure compared to greenfield development while maintaining domestic manufacturing capacity.

Five-year procurement framework

EDF Power Solutions North America, part of the EDF group, has signed a five-year framework agreement with Ford Energy. The agreement gives EDF the ability to procure up to 4 GWh of battery energy storage systems each year, with a total potential volume of 20 GWh over the agreement's full term.

Deliveries under this agreement are expected to begin in 2028. "As we continue to expand our energy storage portfolio, supply chain reliability and product quality are paramount," says Tristan Grimbert, CEO of EDF Power Solutions North America.

"This framework agreement gives us the supply visibility and product confidence we need to execute at the pace the energy transition demands."

The contract structure provides long-term procurement visibility for EDF's energy storage deployment programmes.

According to the Solar Energy Industries Association, battery energy storage systems in the US are expected to see up to 70 GWh of growth in 2026 alone. Manufacturing capacity, however, is limited across the supply chain.

According to Wood Mackenzie, US battery cell manufacturing capacity met only around 6% of domestic demand in 2025. The supply-demand imbalance could mean procurement challenges for utilities and energy companies seeking to secure battery storage systems.

Product specifications and applications

Ford Energy's flagship product is the DC Block, designed for utility-scale applications. These include frequency regulation, voltage support, energy arbitrage, peak load shifting, demand response, backup power and microgrid integration.

The Block is a standardised, 20-foot containerised energy storage system with capacity of 5.45 MWh per unit. The system uses 512 Ah lithium iron phosphate prismatic cells and is available in two-hour and four-hour discharge configurations, with an operating voltage range of 1,040 to 1,500 VDC and integrated liquid cooled thermal management.

Advancements in lithium ion and emerging chemistries have cut average global battery energy storage system prices to roughly a third of 2020 levels. Technologies like data centres and renewable energy, alongside requirements for grid resilience, are increasing demand for battery energy storage systems around the world.

The lithium iron phosphate chemistry used in Ford Energy's products could indicate a sourcing strategy focused on materials with lower cobalt content than traditional lithium ion batteries.