Ford Motor Co., based in Michigan, has announced plans to focus more on manufacturing hybrid as well as gas-powered vehicles in the coming years while scaling back its interest in electric vehicle (EV) battery manufacturing.
Regarding EVs, Ford has reached an agreement with South Korea's SK On, where SK will fully take over the EV battery plant they had planned to build together in Tennessee.
In Kentucky, Ford plans to start a new business focused on battery energy storage systems. These systems will serve industries like data centers, utilities, and large businesses. Ford will use its existing battery manufacturing facility in Glendale, Kentucky, to create storage systems and generate new revenue, investing around $2 billion over the next two years. The company plans to produce lithium iron phosphate (LFP) cells and large-scale storage modules.
As for EV production, Ford has stopped making its current F-150 Lightning electric truck but will continue producing the traditional gas-powered and hybrid F-150 models. Issues at a plant in New York that supplies materials for the Lightning have contributed to the production halt. Ford is working on a next-generation F-150 Lightning with improved range and plans to build it in Dearborn, Michigan.
Ford is also making changes to its manufacturing plants. The Tennessee Electric Vehicle Center in Stanton, Tennessee, will be renamed the Tennessee Truck Plant and will start producing new gas-powered truck models in 2029. Additionally, the Ohio Assembly Plant in Avon Lake, Ohio, will become the site for building a new line of gas- and hybrid-powered commercial vans starting in 2029.
Executive Statement
According to Ford president and CEO Jim Farley, this is a customer-driven shift to create a stronger, more resilient and more profitable Ford. The operating reality has changed, and they are redeploying capital into higher-return growth opportunities: Ford Pro, our market-leading trucks and vans, hybrids and high-margin opportunities like their new battery energy storage business.