Ford Resets EV Strategy, Takes $19.5B Charge

December 16, 2025 at 07:19 UTC

5 min read

Key Points

Ford will take about $19.5 billion in EV-related charges as it overhauls its electrification plans
Production of the current all-electric F-150 Lightning has ended, with a new extended-range version to follow
BlueOval City in Tennessee and BlueOval SK in Kentucky are being repurposed for gas trucks and battery storage
Ford is launching a battery energy storage business and expects hybrids, EREVs and EVs to reach 50% of volume by 2030

Massive financial hit as Ford pivots away from large EVs

Ford Motor Company has announced a sweeping reset of its electric vehicle strategy that will result in about $19.5 billion in special charges, mostly recorded in the fourth quarter of 2025. The charges are tied to rationalizing EV-related assets, canceled programs and changes to its product roadmap. Despite the write-down, Ford raised its 2025 adjusted EBIT guidance to about $7 billion, up from a prior range of $6 billion to $6.5 billion, citing underlying business strength and cost improvements. The company expects around $5.5 billion of the special items to be cash effects, with most payments in 2026 and the remainder in 2027. Ford said the business case for heavily investing in large EVs has "eroded" due to lower-than-expected demand, high costs and regulatory changes, and it will instead redeploy capital into higher-return areas such as trucks, vans, hybrids and a new battery energy storage business.

F-150 Lightning production halted and redesigned as EREV

A central element of the overhaul is Ford’s flagship electric pickup. Production of the current-generation, fully electric F-150 Lightning has concluded, with Ford halting output this month and not specifying when a new model will launch. The company will no longer produce a purely electric version of the F-150. Instead, the next-generation Lightning will use an extended-range electric vehicle (EREV) architecture that combines electric drive with an onboard gas-powered generator. Ford says the redesigned truck is expected to deliver more than 700 miles of range and improved heavy-duty towing, aiming to address customer concerns about long-distance use and capability. The new Lightning EREV will be assembled at the Rouge Electric Vehicle Center in Dearborn, Michigan, while employees from the current Lightning line are being redeployed to support a third crew building gas and hybrid F-150s at the nearby Dearborn Truck Plant.

Shift to hybrids, smaller EVs and Universal EV Platform

Ford is broadening its powertrain mix, planning to expand hybrid offerings across nearly its entire portfolio and add extended-range electric options to larger trucks and SUVs. By 2030, the company expects about 50% of its global vehicle volume to come from hybrids, extended-range EVs and fully electric vehicles, up from roughly 17% today. Pure EV development in North America will be concentrated on a new low-cost, flexible Universal EV Platform designed for smaller, more affordable models. The first vehicle on this platform will be a fully connected midsize electric pickup, slated for production in 2027 at the Louisville Assembly Plant. At the same time, Ford is canceling plans for certain larger EVs, including a next-generation all-electric truck internally known as T3 and a new electric commercial van for North America and Europe, replacing the latter with more affordable gas and hybrid vans.

U.S. manufacturing reshaped: Tennessee, Ohio and Kentucky

The strategic reset brings major changes to Ford’s U.S. manufacturing footprint. At BlueOval City in Stanton, Tennessee, the Tennessee Electric Vehicle Center has been renamed the Tennessee Truck Plant and will no longer build next-generation electric trucks. Instead, it will produce new affordable "Built Ford Tough" gas-powered pickups starting in 2029, with planned employment reduced from an expected 3,300 jobs to about 2,300. In Ohio, the Ohio Assembly Plant will become a central hub for Ford Pro, assembling a new gas and hybrid commercial van in 2029, alongside Super Duty chassis cabs, in place of a previously planned EV van. In Glendale, Kentucky, Ford will convert the BlueOval SK Battery Park from EV battery production to manufacturing battery energy storage systems, leading to expected layoffs of about 1,500 existing workers as the joint venture is unwound and the site becomes a Ford-owned facility.

New battery energy storage business targets grid and data centers

Ford is launching a battery energy storage system (BESS) business to repurpose underutilized EV battery capacity and create a new revenue stream. The company plans to invest about $2 billion over the next two years and bring initial capacity online within roughly 18 months. The Glendale, Kentucky facility will be converted to produce 5 MWh-plus advanced storage systems, lithium iron phosphate (LFP) prismatic cells, modules and 20-foot DC container systems, with Ford targeting 20 GWh of annual capacity and shipments beginning in 2027. The company says these systems are aimed at data centers, utilities and large industrial and commercial customers. Ford will also use its BlueOval Battery Park Michigan in Marshall to make smaller Amp-hour cells for residential energy storage and LFP cells for its upcoming midsize electric truck. Executives describe the storage business as a high-margin opportunity that complements Ford’s manufacturing capabilities and existing battery technology licenses.

Key Takeaways

Ford is exiting several large EV programs and absorbing a $19.5 billion charge to refocus on hybrids, extended-range EVs and smaller, lower-cost electric models.
The current all-electric F-150 Lightning is ending, with a new EREV version and a midsize EV pickup forming the core of Ford’s future electrified truck lineup.
Repurposing plants in Tennessee, Ohio and Kentucky toward gas trucks and battery storage shows Ford prioritizing near-term profitability and new energy storage revenue streams while maintaining long-term electrification goals.