May 18 - Ford Motor's energy unit announced on Monday that it has reached a five-year agreement to supply EDF with as much as 20 gigawatt-hours (GWh) of storage capacity. The arrangement allows EDF to procure up to 4 GWh of direct-current block battery energy storage systems (BESS) per year from Ford Energy, the automaker's newly formed energy arm.
The companies said deliveries under the contract are expected to start in 2028. The agreement positions Ford Energy as a supplier of utility-scale battery systems to a renewable power developer that operates low-carbon generation and flexible power solutions across the United States, Canada and Mexico.
Ford Motor's shares were trading about 3.6% higher in premarket activity following the announcement, reflecting investor interest in the automaker's pivot to stationary energy assets. The deal comes amid a rising trend of data centers adopting backup power systems as electricity demand grows - a surge the parties linked to increased use of artificial intelligence services placing new strains on U.S. energy infrastructure.
Automakers have begun to pursue opportunities in energy storage by repurposing manufacturing capacity and know-how developed for electric-vehicle batteries. Ford's entry into the market follows a $19.5-billion writedown on its electric vehicle programs last year, after which the company said it would establish an energy storage business. That initiative includes repurposing plant space in Kentucky that had previously been intended for EV battery production.
EDF said the agreement will support its build-and-operate activities for low-carbon energy production and for flexible and transmission-related electricity solutions across North America. Ford's commitment to provide DC block BESS units at scale ties directly to the broader opportunity for stationary batteries to serve grid balancing, backup power for critical facilities, and integration with renewable generation.
The companies provided no additional financial terms beyond the volume and duration of the purchase agreement. They also did not provide more granular timing for delivery milestones other than the expectation that shipments will commence in 2028.
Contextual note: The announcement highlights how industrial-scale battery systems are becoming part of utility and infrastructure planning, particularly where power demand is growing and grid flexibility is required. Specific competitive or financial impacts beyond the stated share movement were not disclosed.