Ford launches Ford Energy subsidiary to produce grid-scale batteries

Ford Motor Company has formally launched Ford Energy, a new wholly owned subsidiary focused on building container-sized battery systems for utilities and data centers. The move follows the company's December 2025 pivot away from certain EV plans and repurposes an underutilized Kentucky plant previously tied to an electric vehicle joint venture.

Ford Energy will produce and sell US-assembled battery storage units, with plans to reach at least 20 gigawatt-hours of annual capacity. First customer deliveries are scheduled for late 2027. The company's flagship product, the DC Block, comes in two configurations delivering 5.45 megawatt-hours each and targets a 20-year service life using lithium iron phosphate cells.

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Ford factory assembly line showcasing gigacasting and 48V tech for new 2027 $30K EV pickup truck.
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Ford adopts Tesla's 48V architecture and gigacastings for 2027 EV pickup

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Ford Motor Company plans to incorporate technologies pioneered by Tesla's Cybertruck into its next-generation electric vehicles, starting with a $30,000 small electric pickup set for release in 2027. The changes include a 48-volt electrical system and gigacasting manufacturing, as part of a $5 billion investment in a new Universal EV platform. These innovations aim to reduce costs, wiring, and weight while improving efficiency.

The U.S. government has officially announced an agreement between Tesla and LG Energy to construct a $4.3 billion lithium iron phosphate (LFP) prismatic battery cell factory in Lansing, Michigan, with production starting in 2027. These American-made cells will power Tesla's Megapack 3 energy storage systems produced in Houston, bolstering the domestic supply chain.

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Tesla's energy storage division achieved record revenue in 2025, outpacing its struggling automotive segment. While robotaxi and humanoid robot ventures remain unproven, batteries and solar initiatives offer reliable expansion. Analysts highlight surging demand from data centers and grid needs as key factors.

Tesla is constructing a new $100 million Megapack battery energy storage facility in Australia. The project aims to balance solar generation variability and provide power for 145,000 homes.

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Tesla has released a new video showcasing its Megapack factory in Lathrop, California. The company states it is now producing 200 Megapacks per week.

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