en.Wedoany.com Reported - After scaling back its electric vehicle business and recording a $19.5 billion loss, Ford Motor has pivoted by establishing an energy storage subsidiary, "Ford Energy," repositioning itself in the battery energy storage system market. This strategic shift propelled Ford's stock price up 28% within two weeks.

The new company will repurpose production capacity originally intended for electric vehicle battery packs to manufacture energy storage systems for utilities, industrial customers, and artificial intelligence data centers. Ford Energy's battery technology originates from a technology license from CATL, under which Ford produces battery cells in Michigan and Kentucky, while CATL gains access to the U.S. market through this arrangement.

Ford plans to deploy at least 20 gigawatt-hours of energy storage annually. In mid-May, Ford signed an agreement with Électricité de France (EDF), planning to supply up to 4 gigawatt-hours of battery storage annually over the next five years, totaling 20 gigawatt-hours.

BNP Paribas analyst James Picariello stated that this represents a repurposing of excess battery cell capacity. He believes Ford will need five more orders of similar scale to reliably assess with high confidence how and when it will reach the 20 gigawatt-hour demand target.

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