Ford Motor's energy unit has signed a five-year agreement to supply up to 20 gigawatt-hours of storage capacity to renewable power developer EDF.
EDF can purchase up to 4 GWh of DC Block battery energy storage systems annually from Ford Energy. Ford shares rose about 3.6% in premarket trading.
Data centers are turning to backup power systems as electricity demand surges from growing use of artificial intelligence, straining U.S. energy infrastructure.
Automakers are repurposing infrastructure built for EV batteries to develop energy storage systems, capitalizing on this demand.
After a $19.5 billion writedown on its EV programs last year, Ford launched an energy storage business using plant space in Kentucky originally designated for EV battery production.
Deliveries under the EDF agreement are expected to begin in 2028.
