Ford Energy secures first battery storage supply deal with EDF as analysts weigh upside

Traders Union
All News
Financial News
Ford battery storage deal

Highlights

Ford Energy signs its first major contract with EDF Power Solutions to supply up to 20 GWh of battery energy storage over five years.
Ford shares fell 1% on Monday after last week's 21% two-day rally following the energy business launch, with analysts maintaining target prices at $13–$14.
UBS and Morgan Stanley cite Ford’s domestic battery supply potential and CATL partnership as positive drivers amid sectoral material sourcing restrictions.

First Ford Energy contract and rollout plans

As reported by CNBC, Ford says it will supply up to 20 gigawatt-hours of battery energy storage capacity to EDF Power Solutions over five years. The agreement is the first major deal for Ford Energy, the carmaker's battery energy storage systems business, which debuted last week in a company statement dated May 11.

Under the arrangement, Ford Energy will provide EDF with access to as much as 4 GWh of DC Block battery energy storage systems each year. The company is positioning the unit to benefit from rising electricity needs linked to artificial intelligence and other energy-intensive market themes that are driving investment in supporting infrastructure.

Morgan Stanley analyst Andrew Percoco says the announcement reinforces Ford's position as a domestic supplier of battery energy storage systems and could be the first of several large customer announcements this year. Morgan Stanley has an equal-weight rating on Ford and a $14 price target, implying roughly 4% upside from Friday's close.

Stock volatility and broader market view

Ford shares edge down 1% on Monday, extending a pullback after a sharp rally last week. Starting last Wednesday, the stock jumped about 21% over two days as investors responded to the company's move into an energy vertical, before surrendering part of those gains on Friday.

UBS analyst Joseph Spak says the energy announcement is likely to be well received because of growing focus on the business's potential. UBS rates Ford a buy with a $14 price target, and Spak says the company's opportunity in battery energy storage is supported by its partnership with Contemporary Amperex Technology Co., or CATL, as well as potential cost advantages tied to compliance with rules limiting battery materials or components sourced from China, Russia, Iran or North Korea.

In a May 14 note, Barclays analyst Dan Levy says Ford's ability to occasionally tap into meme-driven trading does not change what he views as solid underlying fundamentals over the long term. Barclays maintains an equal weight rating and a $13 price target, implying about 3% downside from Friday's close. Even so, the broader analyst view remains cautious, with LSEG data showing 17 of 24 analysts rate the stock a hold, while five assign a buy or strong buy rating.

Our earlier report on Ford Energy’s five-year agreement with EDF outlined how Ford plans to supply up to 20 GWh of grid-scale battery storage capacity, with deliveries expected to start in 2028. We noted that EDF can procure up to 4 GWh per year of Ford’s DC Block systems and that the move targets a market being propelled by AI-related growth in electricity demand and data-center backup power needs.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.