On December 16, insiders with knowledge of the situation revealed that Ford Motor Company is set to realign the production focus of one of its battery plants situated in Kentucky. The shift will involve transitioning from manufacturing battery cells tailored for electric vehicles (EVs) to producing those designed for grid energy storage.

This strategic pivot is a direct response to the ongoing downturn in U.S. electric vehicle market sales and is aimed at effectively utilizing the currently underutilized EV manufacturing capacity. Just last week, Ford terminated its joint venture with South Korean battery giant SK On, subsequently taking full control of two battery plants located in Glendale, Kentucky. Presently, only one of these facilities is operational, and Ford has outlined plans to repurpose its production towards grid-scale energy storage batteries.

The plant in question was originally tasked with supplying batteries for Ford's flagship electric pickup truck, the F-150 Lightning. However, production of the F-150 Lightning has been temporarily halted following a fire incident at a key supplier in September.