Ford Shifts Focus to Battery Storage as EV Sales Falter

The automaker plans to convert an idle Kentucky factory to produce large batteries for utilities, data centers, and other businesses.

Published on Feb. 12, 2026

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After shutting down an underutilized electric vehicle battery factory in Kentucky, Ford Motor Company is pivoting to manufacturing large-scale energy storage batteries for utilities, data centers, and other commercial customers. The move comes as Ford's electric vehicle sales have not met expectations, leading the company to take a $19.5 billion write-down on its EV investments. Ford hopes to leverage its manufacturing expertise to compete in the growing battery storage market, though it faces seasoned competitors like Tesla.

Why it matters

The shift reflects the challenges automakers face as they navigate the transition to electric vehicles, with changing consumer demand, policy shifts, and supply chain disruptions impacting profitability. Ford's move also highlights the growing importance of energy storage technologies to support the integration of renewable power and ensure grid reliability.

The details

Ford's factory in Glendale, Kentucky, which briefly produced batteries for the F-150 Lightning electric pickup, will now be converted to manufacture large-scale battery storage systems for utilities, data centers, and other commercial customers. The company plans to invest $2 billion to retool the facility and leverage its manufacturing expertise. However, Ford faces competition from established players in the battery storage market, including Tesla, LG Energy Solution, and SK On.

  • In December 2025, Ford shut down the Glendale factory that had been producing electric vehicle batteries.
  • Ford plans to restart production at the Glendale facility in 2027 to manufacture large-scale battery storage systems.

The players

Ford Motor Company

A major American automaker that is shifting its focus to battery storage systems after underperforming electric vehicle sales led to a $19.5 billion write-down on its EV investments.

Andy Beshear

The Democratic governor of Kentucky, who expressed confidence in Ford's ability to compete in the battery storage market, citing the 'enormous' demand.

Chris Wright

The U.S. Secretary of Energy, who acknowledged the role of battery storage in enhancing the grid's ability to handle peak demand and respond to emergencies.

Lauren Glickman

The vice president of policy and communications at Encore Renewable Energy, a Vermont company that builds solar and battery projects, who said her company would closely consider Ford as a battery storage supplier.

Ardes Johnson

The former Tesla executive who is now the CEO of NeoVolta, a California company that provides batteries for homes and businesses, and who expressed confidence in Ford's ability to succeed in the battery storage market.

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What they’re saying

“I'm confident that they can compete. The demand is enormous.”

— Andy Beshear, Governor of Kentucky (Kentucky.com)

“There is a role for batteries 'to enhance our ability to deal with peak demand'.”

— Chris Wright, U.S. Secretary of Energy (The New York Times)

“We would take a close look at a powerhouse manufacturer like Ford entering this space.”

— Lauren Glickman, Vice President of Policy and Communications, Encore Renewable Energy (The New York Times)

“I wouldn't bet against them being capable of doing it.”

— Ardes Johnson, CEO, NeoVolta (The New York Times)

What’s next

Ford plans to invest $2 billion to install new machinery and make other changes to the Glendale factory in order to begin producing large-scale battery storage systems in 2027.

The takeaway

Ford's pivot to battery storage highlights the challenges automakers face as they navigate the transition to electric vehicles, with changing consumer demand, policy shifts, and supply chain disruptions impacting profitability. The move also underscores the growing importance of energy storage technologies in supporting the integration of renewable power and ensuring grid reliability.