Key Takeaways:
Ford Motor Co.’s energy unit will supply up to 20 gigawatt-hours of battery storage systems to renewable developer EDF Power Solutions North America under a five-year deal, a move that establishes the automaker as a key supplier to the power grid.
"This framework agreement gives us the supply visibility and product confidence we need to execute at the pace the energy transition demands,” said Tristan Grimbert, CEO of EDF Power Solutions North America.
The agreement allows EDF to procure up to 4 GWh of Ford’s DC Block battery systems annually, with the first deliveries expected in 2028. Ford is converting a Kentucky plant previously intended for electric-vehicle batteries to produce the 5.45 MWh containerized units, which use lithium iron phosphate (LFP) cells.
Shares of Ford (NYSE: F) rose 3.6% in premarket trading on the news, which confirms the automaker's strategy to enter the lucrative grid-storage market. The move addresses surging electricity demand from data centers and artificial intelligence that is straining the existing U.S. power grid.
“This agreement with EDF Power Solutions validates the market’s need for a BESS supplier that combines industrial-scale manufacturing discipline with full lifecycle accountability,” said Lisa Drake, president of Ford Energy, the new stationary storage subsidiary.
The deal provides Ford with a foundational customer, de-risking its manufacturing investment in the new energy division. For EDF, it secures a domestic supply chain for critical components needed to support its 26-gigawatt project development pipeline across North America.
This article is for informational purposes only and does not constitute investment advice.
