What is Ford's new energy storage business based on, and who is leading it?

Ford's new energy storage business is a wholly-owned subsidiary utilizing LFP prismatic battery technology—an iron-based battery chemistry—and is directed by Lisa Drake, a key leader in the company's electric vehicle efforts. The business repurposes plant space in Kentucky previously intended for EV battery production and is backed by a $2 billion investment, with first customer deliveries expected in late 2027 and an annual deployment target of at least 20 GWh.

How did Ford secure its battery technology for the energy storage business, and why do analysts view this as significant?

Ford secured its battery technology through a licensing agreement with Chinese manufacturer CATL, which Morgan Stanley analysts describe as an 'underappreciated strategic competitive advantage.' They highlight this relationship as a key strength supporting Ford's entry into the energy storage market—serving data centers, utilities, and large-scale industrial and commercial customers—and expect Ford to sign supply agreements with major commercial customers in the coming months.

Ford Stock Surges 13% on New Energy Storage Business Launch

May 13, 2026

Ford Motor shares jumped 13% following its announcement of a $2 billion energy storage venture using CATL-licensed LFP battery technology. The company aims to deploy 20 GWh annually starting in late 2027 for industrial and utility clients.

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