Ford abandons ev dreams with $20 billion loss, pivots to grid battery storage market

Ford Motor Company is making a dramatic strategic shift, writing off nearly $20 billion in electric vehicle investments while pivoting toward the booming energy storage sector. The automotive giant will repurpose its Kentucky battery plant to manufacture grid storage systems, targeting the rapidly expanding market for utility-scale batteries and data center power solutions.

The massive financial write-down represents one of the largest corporate impairments in history, reflecting Ford’s struggle to compete in the sluggish U.S. EV market. The company plans to lay off approximately 1,600 workers at its Glendale, Kentucky facility while investing $2 billion over the next two years to retool for grid battery production. Ford aims to produce 20 gigawatt-hours of storage capacity annually by 2027, manufacturing lithium iron phosphate cells packaged in shipping containers comparable to Tesla’s Megapack systems.

The timing reflects broader market realities: U.S. EV sales have stagnated at just 10% of new vehicle purchases, hampered by the elimination of federal tax credits and falling gasoline prices. Meanwhile, grid storage deployment is skyrocketing, driven partly by AI data centers’ voracious energy demands. Tesla’s energy division grew 67% last year, surpassing $10 billion in revenue for the first time.

Ford’s entry into grid storage comes as new federal regulations will require battery projects to source components domestically starting in 2026, potentially creating opportunities for U.S. manufacturers. However, the company faces established competitors and lacks the proven track record in energy storage that companies like Tesla have built over the past decade.