It appears that Ford is making a significant pivot in its electric vehicle strategy, effectively winding down production of the all-electric F-150 Lightning. Instead of focusing on full-size electric pickups, the company is shifting its attention towards hybrid vehicles, extended-range EVs (EREVs), and importantly, venturing into the battery storage business, particularly for data centres.
This move isn't entirely unexpected, as rumours about the F-150 Lightning's discontinuation have been circulating for some time. Adding to this, SK On, a ke y partner in Ford's EV battery joint venture, has ended its collaboration, with one of the two planned battery plants in Kentucky and Tennessee now focusing on energy storage. Ford is investing a substantial $2 billion into its Kentucky plant to retool it for the production of prismatic lithium iron phosphate (LFP) cells. These cells are specifically suited for data centre applications, with an anticipated output of 20 GWh annually within the next 18 months.
Furthermore, other Ford manufacturing facilities are also being repurposed. The assembly plant in Tennessee, originally slated to produce the electric F-150, will now be dedicated to building new petrol-powered trucks, albeit not for another four years. Concurrently, its Ohio assembly plant will commence the production of new commercial vehicles. These strategic shifts are projected to have a considerable financial impact on Ford, with an estimated cost of $19.5 billion over the coming years, a portion of which will be pai d in cash, with the majority of the financial impact expected in the final quarter of 2025 and extending through 2027.
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