Ford Takes On Elon Musk's Tesla Energy Business With New Battery Storage Push

May 14, 2026 - 12:54

Ford Motor Co. has announced the creation of a new wholly owned subsidiary called Ford Energy, marking a direct challenge to Tesla's growing energy storage division. The new company will focus on manufacturing large-scale Energy Storage systems at Ford's facility in Kentucky, with an ambitious target of producing enough units to support deployments totaling 20 gigawatt-hours annually.

According to the automaker, Ford Energy will begin delivering its first storage systems to customers in 2027. The move represents a significant pivot for Ford, which has traditionally focused on vehicle production, as it seeks to capitalize on the booming market for grid-scale batteries and backup power solutions.

The Kentucky plant will serve as the primary manufacturing hub for the new subsidiary. Ford executives have not yet disclosed specific details about the battery chemistry or the exact size of the storage units, but the company has emphasized that the systems will be designed for both residential and commercial applications.

This expansion puts Ford in direct competition with Tesla's Energy business, which has become a major profit center for Elon Musk's company. Tesla's Megapack and Powerwall products have dominated the market in recent years, but Ford is betting that its manufacturing scale and existing supply chain relationships can help it carve out a significant share.

Industry analysts note that the 20 GWh annual target is substantial, roughly equivalent to the output of several large battery factories. Ford has not revealed the total investment required for the project, but the company has confirmed that construction at the Kentucky site is expected to begin later this year.