Automotive giant Ford announced the official launch of Ford Energy, its new battery energy storage systems (BESS) business, aimed at providing BESS solutions for utilities, data centers and large industrial and commercial companies in the U.S.

The launch of the new business follows plans by announced by Ford last year to launch a new BESS unit after reporting a $19.5 billion charge and rationalizing its U.S. EV-related assets and product roadmap due to lower than expected demand, with the new business enabling the company to repurpose some of its existing U.S. battery manufacturing capacity to meet growing demand for dispatchable energy storage driven by data center growth, increasing renewable energy capacity, and grid resilience requirements.

In a post announcing the launch of the new business, Ford Energy President Lisa Drake said:

“For the better part of a year, we have operated quietly to build a foundation for this business. We haven’t just been planning; we have been executing — securing supply chains, readying our manufacturing sites and aligning our technology with the massive demand for domestic energy storage.”

The new BESS business unit’s operations will span the full range of battery cell manufacturing activities, from electric coil production to assembly of modules and containers, in addition to providing sales and service support. BESS systems will be assembled in Ford’s repurposed battery manufacturing capacity in Glendale, Kentucky, with 4 million square feet of dedicated facility space.

The company said that it aims to deploy at least 20 GWh annually from the new business, with initial deliveries to customers planned for late 2027. Ford has announced plans to invest approximately $2 billion to scale the business over the next 2 years.