Ford’s $2B Energy Pivot Gives Its EV Business a New Lifeline

Detroit’s blue oval just found a side hustle that has nothing to do with selling trucks. Ford Motor CompanyF

is pouring $2B into Ford Energy, a new business repurposing EV batteries into storage systems for AI data centers and utilities. Investors are buying into the pivot, sending Ford shares up 28% in the past two weeks to their highest level since 2023.

• Ford’s rally has outpaced competitors, with ToyotaTM
  down roughly 12% year-to-date while StellantisSTLA
  has fallen about 28%.
• Morgan Stanley analysts estimate Ford Energy could eventually be worth $10B, with EBIT reaching roughly $600M within a few years.

Hurdle watch: Ford’s energy push is starting small, but investors see a potential long-term opportunity incoming. Its first deal with EDF covers 4 gigawatt-hours annually starting in 2028, while a partnership with China’s largest battery maker, CATL, gives Ford access to cheaper battery technology. If Ford Energy gains traction, it could help cushion the roughly $4B in annual losses expected from Ford’s EV division through 2028 and give the automaker a second lane for growth beyond cars.