How is Ford Adapting to Critical Mineral Supply Shifts?

Ford has established Ford Energy as a wholly owned subsidiary to produce battery energy storage systems. The company will convert its existing electric vehicle battery manufacturing site in Glendale, Kentucky to produce utility-scale storage units starting in 2027.

The facility will deploy at least 20 GWh annually. Lisa Drake, President of Ford Energy, says "Ford Energy allows us to maximise the value of our battery manufacturing capabilities.

"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."

Repurposing Kentucky battery capacity

Ford is converting the Glendale site rather than constructing new infrastructure. The location previously housed two of three plants operated by BlueOval SK, a joint venture between Ford and SK On that manufactured batteries for electric vehicles.

According to Ford, the company announced a US$19.5bn reset in December 2025. The automaker cancelled plans for next-generation large electric trucks and pure-electric commercial vans, redirecting resources toward affordable small electric vehicles, hybrids and extended-range electric vehicles that use combustion engines as generators.

The joint venture ended following this change. Workers at the Kentucky plant were laid off in February 2026.

Ford Energy now operates the facility for battery storage system manufacturing.

Critical materials in storage systems

The DC Block uses lithium iron phosphate prismatic cells rated at 512 Ah. Each 20-foot containerised unit stores 5.45 MWh and operates between 1,040 and 1,500 VDC with integrated liquid-cooled thermal management.

Lithium iron phosphate chemistry reduces reliance on cobalt and nickel compared to other lithium-ion formulations. The material composition could influence supply chain dynamics for battery manufacturers as demand for stationary storage grows.

According to Wood Mackenzie, US battery cell manufacturing capacity met only around 6% of domestic demand in 2025. Limited manufacturing capacity across the supply chain could affect material sourcing and processing timelines for critical battery minerals.

Advancements in lithium-ion chemistries have reduced average global battery energy storage system prices to roughly one third of 2020 levels.

Supply agreements and market demand

EDF power solutions North America has signed a five year framework agreement with Ford Energy. The deal allows EDF to procure up to 4 GWh of battery energy storage systems annually, totalling 20 GWh over the full term.

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

"Ford Energy's commitment to domestic manufacturing and its rigorous approach to traceability and lifecycle support align with the standards we hold across our portfolio."

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. Data centres, renewable energy installations and grid resilience requirements are increasing demand for storage capacity.

Ford's DC Block is designed for frequency regulation, voltage support, energy arbitrage, peak load shifting, demand response, backup power and microgrid integration. The system is available in two hour and four hour discharge configurations.