DETROIT, (Reuters) – Investor support for Ford Motor’s energy storage business sent its stock soaring 13% Wednesday, the biggest single-day increase in about six years, following a note from Morgan Stanley highlighting details released by the company on Monday. Ford announced its wholly-owned energy subsidiary late last year, and it is being directed by Lisa Drake, who has been a key leader in the company’s efforts around electric vehicles.
Here are the details:
- After a $19.5 billion writedown on its EV programs in December, Ford announced it would launch an energy storage business, utilizing plant space in Kentucky that was previously meant to produce batteries for electric vehicles.
- Ford is using LFP prismatic battery technology for its energy storage business, an iron-based battery chemistry. These products are meant to serve data centers, utilities, and large-scale industrial and commercial customers.
- Morgan Stanley analysts pointed to Ford’s agreement to license battery technology from industry-leading Chinese manufacturer CATL as a key strength. Analysts said they “believe Ford’s relationship with CATL is an underappreciated strategic competitive advantage,” and said they expect Ford to sign a supply agreement with large commercial customers over the coming months.
- Ford is investing $2 billion in the business, and plans for its first customer deliveries to land in late 2027. It expects to deploy at least 20 GWh annually.
Reporting by Nora Eckert in Detroit; Editing by Sanjeev Miglani
