Ford set to become a major battery supplier in the U.S. market

Ford is charging into new territory

Ford might soon be known for more than just trucks and Mustangs. With its battery factories producing more than it needs, the company could shift gears and sell extra EV batteries to other companies that need them to power electric cars or even buildings.

This change marks a major pivot from Ford’s traditional model of just building and selling vehicles. Instead of letting batteries sit unused, the automaker is exploring turning those extra cells into profits, opening up a whole new business opportunity in the battery world.

Ford and SK On have built BlueOval SK

To support its electric vehicle plans, Ford partnered with SK On, a South Korean battery company, to create BlueOval SK. This joint venture focuses entirely on making batteries for Ford’s EVs in the U.S., helping boost local production and reduce reliance on imports.

Their facilities are massive, with billions invested into plants in Kentucky and Tennessee. But now, with EV sales growing slower than expected, BlueOval SK finds itself with more battery-making power than Ford currently needs, opening the door to new potential customers.

Kentucky plant is now operational

BlueOval SK’s Glendale, Kentucky battery plant began production in August 2025. The site will supply batteries for Ford EVs in North America; Ford hasn’t identified the first recipient models

Although the factory is only partially up and running, it already employs over 1,000 people. It currently employs about 1,000 people and is expected to support around 5,000 jobs at full ramp.

Battery oversupply presents a new opportunity

Ford isn’t in trouble; it just has more batteries than it needs. Because EV demand hasn’t met expectations, BlueOval SK is producing more battery cells than the company can use in its own vehicles, creating a unique surplus of valuable, U.S.-made batteries.

Instead of cutting production or letting batteries pile up, Ford is exploring ways to sell the extras. That includes supplying other carmakers, tech companies, or energy providers, all of whom are facing their own challenges getting affordable, domestic batteries for their electric products.

Ford in talks with Nissan about U.S. battery supply

Reports indicate discussions are underway, but no agreement has been announced. If the deal goes through, Ford’s surplus battery cells could be used in Nissan’s U.S.-based EV production, creating a win-win partnership for both companies.

This would strengthen the domestic EV ecosystem and reduce reliance on imported battery cells, something many automakers are actively trying to avoid.

The deal isn’t official just yet

Although Ford and Nissan are talking, there’s no signed agreement as of now. That means while both companies are interested, a lot still depends on price, volume, and delivery timelines before anything becomes set in stone or made public.

Still, this shows that automakers are beginning to see Ford as more than a rival. With so few domestic battery producers at scale, BlueOval SK might quickly become a key supplier for brands that want to meet U.S. regulations and avoid import tariffs.

Tennessee plant delayed until 2027

Ford’s Tennessee battery plant is now expected to begin production in 2027, following schedule adjustments. Originally expected sooner, the plant’s launch has been pushed back due to reduced demand.

This delay gives Ford time to evaluate the EV market and avoid overspending. While it slows down expansion, it also gives the company flexibility and the chance to turn the focus toward monetizing its current production capacity through third-party battery sales.

Michigan plant will make cheaper batteries

In addition to Kentucky and Tennessee, Ford is building another battery plant in Marshall, Michigan. This one will focus on LFP batteries, which are cheaper and more durable, making them ideal for more affordable electric vehicles expected in the next few years.

This facility won’t be ready until at least 2026, but it shows Ford’s long-term commitment to electrification. While high-end EVs grab headlines, budget-friendly models need cost-efficient batteries, something this new plant could help deliver across Ford’s future EV lineup.

Battery sales could ease losses

Ford’s Model e segment recorded a $5.08B loss in 2024; additional battery revenue could help offset ongoing EV losses. That’s a big number even for a company like Ford, and battery sales could help bring in much-needed revenue to reduce those ongoing losses over time.

Turning battery production into a business gives Ford a new revenue stream. Instead of relying only on car sales, the company could stabilize its finances by selling components that are in high demand.

Ford may help automakers avoid tariffs

With rising tariffs on batteries and EV parts from countries like China, U.S.-made battery supplies are more valuable than ever. Ford’s battery surplus could help other automakers avoid those import fees by sourcing components domestically through BlueOval SK.

It creates a stable, local supply of batteries that’s less affected by global politics, port delays, or international trade restrictions, making American-made EVs more competitive and reliable.

Energy companies are also interested

Ford isn’t only looking at carmakers for battery sales. Energy companies that build grid storage and backup power systems need batteries, too, and Ford’s overcapacity could be perfect for those types of commercial-scale energy storage projects across the country.

As the power grid shifts toward renewables like solar and wind, reliable energy storage becomes crucial. Ford’s domestically produced battery cells could serve this market, helping stabilize power supplies and meet future energy demands with American-made tech.

Batteries may power future military tech

Ford’s extra battery output could find its way into national defense. As the U.S. military explores electric vehicles and portable power systems, domestically made battery cells from trusted companies like Ford could support future military tech and battlefield energy solutions.

Ford’s overcapacity gives a chance to serve government contracts, which require American-made components and long-term reliability, a new, high-value market for its growing battery business.

Ford could tap into home energy

Homeowners are looking for ways to store solar energy, and Ford’s extra batteries might be the answer. Just like Tesla’s Powerwall, Ford could offer home battery systems that store power for when the grid goes down or rates go up.

By repurposing EV batteries for residential use, Ford could enter the home energy market. These systems can reduce electric bills, boost energy independence, and give Ford another way to grow profits outside of car sales.

Ford’s new EV platform is coming

While batteries are a hot topic now, Ford is still planning future electric vehicles. The company’s new “EV Universal Platform” is expected to support smaller, more affordable EVs starting around $30,000, with production beginning as early as 2026.

These models are designed to be simpler and cheaper to build, helping Ford stay competitive as customers look for budget-friendly EV options.

Tesla’s battery strategy inspired Ford

Ford is taking a page from Tesla’s playbook. Tesla makes billions from energy storage and battery sales, not just cars, and Ford is starting to realize that batteries themselves can be a powerful business, especially during uncertain EV demand.

Energy storage is one of Tesla’s fastest-growing divisions. With Ford now producing more batteries than it needs, the company could build a similar business model, one that makes profits even when electric vehicle sales fluctuate.

EV drivers can breathe a sigh of relief as Electrify America expands its EV fast-charging network with more stations and shorter wait times.

Ford’s future goes beyond cars

It’s no longer just about selling trucks and SUVs. Ford’s next big opportunity might be powering everything from rival EVs to homes and power grids all through batteries built right here in the U.S.

Becoming a major battery supplier could give Ford an edge in a changing auto market. As electric vehicles, energy storage, and grid demand rise, Ford’s early investment in battery plants may become one of the smartest moves it’s ever made.

You might be surprised to learn that these cars look like supercars but cost less than you think, offering both style and performance without the hefty price tag.

Would you trust Ford as your go-to source for EV or home energy batteries? Let us know what you think!

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This slideshow was made with AI assistance and human editing.