Ford shares jump 10% on new battery storage subsidiary and $10B valuation by Morgan Stanley

Ford Motor Company announced the launch of Ford Energy, a subsidiary focused on large-scale battery storage systems for utilities, industrial clients, and AI data centers. Morgan Stanley valued this new division at $10 billion, projecting annual EBIT of $588 million at scale. Ford plans to invest $2 billion to repurpose its Kentucky facility to produce utility-grade battery systems, targeting 20 gigawatt-hours of annual capacity with first deliveries expected by late 2027. The move positions Ford in the fast-growing battery storage market, supported by a major five-year supply deal with EDF and a partnership with Chinese battery maker CATL, aiming to leverage manufacturing expertise and benefit from U.S. tax incentives.