Ford Energy launches to take on Tesla with utility-scale battery storage systems

ford energy

Ford is officially entering the battery energy storage business, launching a new subsidiary called Ford Energy as the automaker looks to expand into the rapidly growing grid storage market.

The new business will focus on large-scale battery energy storage systems (BESS) for utilities, data centers, and industrial customers, putting Ford in direct competition with established players like Tesla Energy and Megapack.

According to details released on Ford Energy’s new website, the company’s first product will be a containerized DC battery storage system built around lithium iron phosphate (LFP) prismatic cells. The systems will be offered in both 2-hour and 4-hour configurations, with each unit capable of storing 5.45 MWh of energy.

Ford says the systems will be assembled in the United States and available beginning in 2027.

The specs reveal Ford is targeting the same utility-scale applications that have helped Tesla Energy become one of the company’s fastest-growing divisions. Ford’s system will use 512 Ah LFP cells, operate between 1040 and 1500 VDC, and fit inside a standard 20-foot container.

The units will also feature liquid cooling, integrated thermal management, and layered battery safety systems designed for demanding operating environments.

Ford says the systems are engineered for applications including frequency regulation, voltage support, peak load shifting, demand response, backup power, and microgrids.

To support the launch, Ford plans to repurpose its BlueOval SK battery plant in Glendale, Kentucky, into a dedicated energy storage manufacturing facility. The site will reportedly produce battery cells, modules, and complete 20-foot storage containers under one roof, with Ford targeting annual production capacity of 20 GWh or more by late 2027.

Ford also intends to leverage its BlueOval Battery Park in Michigan to produce smaller battery cells for residential energy storage products, suggesting the company could eventually expand into a Powerwall-style home battery business.

Leading the new division is Lisa Drake, who has been named president of Ford Energy. Drake previously oversaw Ford’s battery and electric propulsion industrial strategy, making her one of the company’s most experienced executives in EV and battery manufacturing.

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