Ford CEO Says Battery Storage Business Is Already Filling Future Capacity

Ford CEO Jim Farley says the automaker is making steady progress in building its battery energy storage business, with demand already emerging ahead of full-scale production.

Speaking during Ford’s second-quarter 2026 earnings call, Farley said the company is well on its way toward securing customers for its planned 20-gigawatt-hour annual battery energy storage capacity.

Ford sees strong demand for battery storage

Ford Energy, a wholly owned subsidiary of Ford Motor Company, was established to develop battery energy storage systems (BESS) for utilities, data centers, and large commercial and industrial customers across the United States, according to Ford Authority.

The business plans to begin producing at least 20 gigawatt-hours of battery storage systems annually starting in late 2027.

Farley said customer discussions are progressing through multiple stages, from initial talks to contract negotiations.

“I would say we’re in the third inning of selling out the 2028 capacity of 20 gigawatt hours,” Farley said during the earnings call, suggesting a significant portion of the company’s planned output is already attracting interest.

He also emphasized that Ford Energy is already producing prototype battery cells in Marshall, Michigan, while the KentuckyOne facility continues to prepare for future production.

Investors remain focused on long-term profitability

Ford has already announced its first major supply agreement for the new business and has indicated additional customer agreements are expected.

However, some analysts remain cautious about the division’s near-term financial outlook.

Because large-scale battery energy storage projects typically involve lengthy development and contracting cycles, Ford Energy is not expected to become profitable immediately after production begins. Some analysts believe positive financial results may not materialize until 2028.

Even so, Farley’s comments underscore Ford’s confidence that demand for large-scale battery storage will continue to grow as utilities, industrial customers, and data center operators expand their energy infrastructure.

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