Ford is cutting back on EVs and redirecting billions toward grid and data center battery storage because that is where demand and margins are moving.
The company will convert its underused Glendale, Kentucky EV battery plant, built with SK On, to produce commercial batteries for data centers, with another Michigan plant focused on residential systems.
Ford plans at least 20 GWh of deployed storage by 2027, directly targeting the power constraints now capping AI data center growth.
This follows the Tesla playbook, where Megapacks already support xAI’s large Memphis supercomputer site, proving batteries as critical infrastructure for GPU-scale facilities.
The strategic backdrop is a US EV market that shrank from 12% to 5% of auto sales, pushing Ford toward hybrids and away from high-capex pure EV bets.
For AI infra builders, the signal is clear: traditional industrials like Ford are repositioning as energy partners to hyperscalers, and battery-backed power is becoming as important as GPUs when planning capacity.
The full piece is worth a read for how fast OEMs are pivoting their manufacturing footprint toward AI-era power bottlenecks.
Source: Ford Is Retreating on EVs and Entering the Data Center Battery Market – Business Insider
