Key Moments
- Ford Motor (NYSE:F) signed a five-year agreement with EDF for up to 20 GWh of energy storage capacity.
- Under the deal, EDF can purchase up to 4 GWh of DC Block battery storage systems per year from Ford Energy.
- Ford shares rose about 3.6% in premarket trading after the announcement. Deliveries are expected to begin in 2028.
Ford Energy Secures Long-Term EDF Deal
Ford Motor (NYSE:F) announced a new five-year supply agreement with renewable energy developer EDF on Monday. Through the deal, Ford Energy will provide up to 20 gigawatt-hours of storage capacity.
In addition, EDF will have the option to buy up to 4 GWh of DC Block battery energy storage systems each year. Investors reacted positively to the announcement, sending Ford shares up roughly 3.6% in premarket trading.
Deal Terms and Capacity Breakdown
| Counterparty | Term | Total Capacity | Annual Purchase Limit | Product |
|---|---|---|---|---|
| EDF | 5 years | Up to 20 GWh | Up to 4 GWh annually | DC Block battery energy storage systems |
According to the companies, deliveries under the agreement should begin in 2028.
AI Boom Increases Demand for Energy Storage
Demand for backup power systems continues to grow as artificial intelligence services expand. Data centers now consume more electricity, which is putting additional pressure on US power infrastructure.
As a result, companies are investing heavily in large-scale battery storage systems. These systems help stabilize power supply and support growing energy needs.
Automakers Expand Beyond Electric Vehicles
Automakers are increasingly moving into the energy storage business. Many companies are repurposing facilities that were originally built for electric-vehicle battery production.
Ford is following that strategy. The company plans to use existing battery infrastructure in Kentucky to support its expanding energy storage operations.
Ford Pushes Deeper Into Energy Storage
Last year, Ford recorded a $19.5 billion writedown tied to its electric vehicle programs. Afterward, the company announced plans to build a dedicated energy storage business.
The new EDF agreement supports that shift. Moreover, it allows Ford to use its existing battery manufacturing capacity to target rising demand for large-scale storage solutions.
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