Ford launches $2B battery storage unit for AI data centres


TL;DR

Ford has launched Ford Energy, a $2 billion subsidiary that will manufacture grid-scale battery storage systems for data centres and utilities using CATL-licensed LFP technology at a repurposed Kentucky plant. It has already signed a five-year deal with EDF Power Solutions for up to 20 GWh.

Ford has launched Ford Energy, a wholly owned subsidiary that will manufacture large-scale battery energy storage systems for utilities, data centres, and industrial customers. The company has committed roughly $2 billion to the operation, which repurposes a Kentucky plant originally built for electric vehicle batteries.

The subsidiary is led by Lisa Drake, who reports directly to Ford vice chair John Lawler. It marks the clearest signal yet that Detroit’s legacy automakers see more immediate profit in powering the AI infrastructure boom than in making the cars that were supposed to justify their battery investments.

What Ford Energy builds

The flagship product is the DC Block, a standardised 20-foot containerised storage system built around 512-amp-hour lithium iron phosphate (LFP) prismatic cells. Each unit is rated at 5.45 megawatt-hours, and the technology is licensed from CATL, the Chinese battery giant that dominates global cell production.

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Ford will manufacture the systems at its Glendale, Kentucky facility, which it is converting after scaling back EV production plans and dissolving its BlueOval joint venture with SK On. The company assumed a $3.8 billion Department of Energy loan tied to the plant as part of the restructuring.

First customer deliveries are targeted for late 2027, with annual output set to reach a minimum of 20 gigawatt-hours. Ford is not alone in seeing this opportunity, as General Motors announced its own push into grid-scale energy storage earlier this year.

The EDF contract

Seven days after the formal launch on 11 May, Ford Energy signed its first commercial deal, a five-year framework agreement with EDF Power Solutions North America for up to 4 GWh of battery storage annually. The contract totals up to 20 GWh over its full term, with deliveries expected to begin in 2028.

Morgan Stanley analysts have reportedly valued the energy storage business at up to $10 billion as a standalone unit. That figure remains speculative, as Ford Energy has not yet shipped a single system, but it reflects the scale of demand that data centre operators and grid operators are projecting over the next decade.

The stock and the scepticism

Ford’s share price surged roughly 20 per cent in the 48 hours following the Ford Energy announcement, climbing from under $14 to a multi-year high above $17. It has since retreated to around $14, erasing most of the gain.

CNBC’s Jim Cramer said on 17 June that he believes Ford can become “a real player in the battery storage space,” though he cautioned that the business will not meaningfully affect earnings for several years. He added that at around $14, the stock looks more attractive than it did during the spike.

The CATL licensing arrangement has drawn scrutiny. CATL appears on a Pentagon list of companies with alleged ties to China’s military, and critics have questioned whether a US-assembled product built on Chinese battery technology qualifies as domestic manufacturing under federal procurement rules.

Ford has said the systems will be assembled entirely in the United States. CATL has disputed the Pentagon designation.

Whether Ford Energy can scale fast enough to matter alongside the automaker’s still-struggling EV division remains an open question. But the pivot from making car batteries to making grid batteries is a bet that the energy storage market will grow faster than the electric vehicle market, at least for now.



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Recent Reviews


I am a recent convert to physical media — yet even as someone getting back into buying discs in 2026, I haven’t been buying Blu-rays. Like many Americans, I still pick up DVDs instead. These aren’t great times for the Blu-ray format, and don’t expect a turnaround in 2026.

Fewer new releases make their way to Blu-ray

More media is now released exclusively for streaming

Blu-ray has been around for two decades, but it never managed to fully replace, or even overtake, the DVD format it was designed to supersede. We still can’t take for granted that our favorite movies, let alone TV shows, will eventually see a Blu-ray release.

The movies most likely to come to Blu-ray are the ones that hit theaters, but a growing amount of cinema is designed exclusively with streaming platforms in mind. I recently rewatched Mississippi Masala, which led me to check in on what work Sarita Choudhury has done over the decades since. A film called Evil Eye released in 2020 caught my eye. Unfortunately, it’s only available via Prime Video. There’s no Blu-ray or even a DVD. In contrast, it’s easy to watch Michael B. Jordan in Sinners on Blu-ray, since that movie came to theaters last year.

You could say that it makes sense that a movie with a 4.8/10 rating on IMDb doesn’t see a physical release, but in the heyday of physical video, store shelves were stacked not only with just the big-budget bangers but plenty of straight-to-DVD movies as well. Now those films exist to pad out streaming catalogs instead.

Fewer big box stores stock their shelves with physical discs

Blu-ray discs have disappeared from some stores entirely

Best Buy store front
Best Buy

The format’s demise is striking. I frequent my local Best Buy quite often and don’t see any movies on display. That’s because the retailer stopped selling movies in stores several years ago. Walmart still sells them, but the selection is a fraction of what you could find ten or twenty years ago. The audience has been reduced down to the shrinking number of people whose internet at home can’t handle streaming and those who might think of themselves as collectors.

If you venture onto Reddit and visit r/Blu-ray, you will find more threads about thrift store hauls and older collections than excitement over the latest new release. Don’t get me wrong — I, too, am very excited about seeing what gems I can snag for only a couple bucks, but this shows the challenge retailers face. Increasingly, only enthusiasts are prepared to drop over $20 on a disc.

I’m not buying discs to stick them in a player

Phone on a stand playing a Netflix video Credit: Bertel King / How-To Geek

The simple truth is that most people don’t want to buy physical media. Discs don’t fit in phones, and the drives are no longer available in most laptops. Even desktop PCs lack a place to put a disk. I recently built a PC for the first time in part to digitize my media library, and I rely on an external DVD drive connected via USB. Yes, DVD, not Blu-ray. A smaller file size combined with upscaling is easier on my hard drive.

Retro nostalgia hasn’t helped Blu-ray in the same way it has aided vinyl. This is in part because most people simply don’t care all that much about video quality. Most are streaming video on Netflix and YouTube at middling settings on small screens, and many of us are acclimated to mid-range phone speakers, compared to which even the subpar built-in speakers on modern TVs sound like a huge step-up. It’s hard to convince large numbers of people to purchase an expensive version of a movie in a format that requires thousands of dollars of home media equipment to truly appreciate.

4K Ultra HD is in an even worse position

It’s been a decade, yet few people own these discs

The 4K Ultra HD Blu-ray format is an enhancement, rather than a replacement, of the Blu-ray discs that first appeared in 2006. Debuting in 2016, the 4K Ultra HD format supports the max resolution of a 4K TV.

4K TVs were still somewhat of a novelty ten years ago, but they’re cheap and commonplace today. Still, people aren’t demanding 4K-quality Blu-ray movies as a result. These discs are still less common than 1080p ones, which are themselves still outnumbered by DVDs.

This isn’t merely a matter of consumers preferring the cheaper option. Often, 4K simply isn’t a choice, or it’s one that arrives significantly later, like the Switch port of a PC title. Some recent films, like Exit 8, are slated to see a physical release over the summer yet will still be in 1080p when they do. Adoption of the newest format has been that slow.

The industry isn’t helping itself, either. 4K Ultra HD Blu-ray discs come with DRM and aren’t easy to play on a modern PC, further limiting potential growth. They do not want anyone pirating these super high-quality versions. When you consider that some of these 4K Blu-rays have an AI upscaling problem, you’re paying more for what may not even be the best version.​​​​​​​


Blu-ray is seeing fewer releases, is available in fewer places, and is less accessible in the ways many of us want to watch TV shows and movies in 2026. With our portable devices getting better and internet speeds getting faster, it’s hard to see physical video staging a turnaround, even if we’re still a long way off from it going away entirely.



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