Ford EV Strategy Reset Signals Shift to ICE, Hybrids, and Energy Storage

On October 30, Ford unveiled a revised EV strategy that rebalances its electric vehicle roadmap with internal combustion and hybrid platforms, while introducing a dedicated energy storage business. The updated plan is designed to respond to slower EV demand, reduce losses in the Model e division, and strengthen margins across Ford Blue and Ford Pro.
The automaker confirmed that these changes are expected to start narrowing EV-related financial losses as early as next year, with a long-term objective of making its EV operations profitable by 2029. The strategy reflects a broader shift toward flexible propulsion choices while maintaining investment in electrification.
Ford EV Strategy Reset and Manufacturing Realignment
Ford’s Rouge Electric Vehicle Center in Dearborn, Michigan, is undergoing a major transformation following production disruptions caused by a supplier aluminum plant fire. The F-150 Lightning will no longer be positioned as a fully electric-only truck. Instead, the facility will transition to building an extended-range electric version of the F-150 Lightning, aligning output with evolving customer expectations for range and cost.
At BlueOval City in Stanton, Tennessee, Ford has revised its long-term production roadmap.

• The facility, originally intended to manufacture a next-generation electric F-150 Lightning starting in 2028, will now focus on affordable gasoline-powered trucks beginning in 2029.

Reflecting the strategic shift, the plant will be rebranded as the Tennessee Truck Plant, with planned employment revised to approximately 2,300 workers.
Ford EV Strategy Reset Impacts Commercial and Van Programs
Significant changes are also planned for Ford’s Ohio Assembly Plant in Avon Lake. The previously announced next-generation electric van program targeted for 2028 has been canceled. Instead, the plant will support production of a next-generation gasoline and hybrid van from 2029, with Ford continuing to rely on its existing Transit lineup for global markets.
This move underscores Ford’s intent to prioritize profitable commercial vehicle platforms while slowing capital-intensive EV launches in segments where demand remains uncertain.
Energy Storage Emerges as a Core Pillar of Ford EV Strategy Reset
A major element of the Ford EV strategy reset is the creation of a new energy storage business anchored at the Kentucky Battery Plant in Glendale. Formerly operated as a joint venture with SK On, the facility is now fully owned by Ford and will transition from EV battery production to stationary energy storage systems.

• The conversion is expected to require an investment of approximately USD 2 billion and create around 2,100 jobs.

The plant will manufacture lithium iron phosphate prismatic cells, battery energy storage modules, and 20-foot DC container systems, targeting data centers and other large-scale energy storage customers. A second Kentucky battery plant remains indefinitely postponed.
Expanded LFP Battery Production and EV Platform Continuity
Ford’s BlueOval Battery Park in Marshall, Michigan, will focus on producing smaller amp-hour cells for residential energy storage applications. From 2026 onward, the site will also manufacture LFP prismatic cells for an upcoming midsize electric pickup, reinforcing Ford’s selective investment in EV programs with clearer demand visibility.
Meanwhile, the Louisville Assembly Plant in Kentucky remains central to Ford’s low-cost Universal EV Platform strategy. The facility is on track to begin production of a fully connected midsize electric pickup in 2027, ensuring Ford maintains a foothold in strategically important EV segments.
To implement the Ford EV strategy reset, the company expects to record USD 19.5 billion in special items, with the majority recognized in the fourth quarter of 2025. The restructuring reflects Ford’s broader effort to balance electrification ambitions with financial discipline, operational flexibility, and long-term profitability.