Ford Motor Company (F) shares edged higher on Thursday following a regulatory filing that revealed a significant restructuring of its battery manufacturing financing. The automaker has assumed a $3.805 billion loan from the U.S. Department of Energy (DOE) for a Kentucky battery plant, while simultaneously exiting its $6.6 billion capital commitment to the BlueOval SK joint venture.
Ford shares traded up 0.9% at $13.35 as of 10:44 a.m. EDT, outperforming its Detroit rivals in a weak session for automakers. General Motors (GM) slipped 0.2%, and Stellantis (STLA) dropped 5.3%. The broader market was also under pressure, with the Dow Jones Industrial Average down 0.05%, the S&P 500 off 0.30%, and the Nasdaq losing 0.46%.
According to the May 20 filing, Ford's membership interest in BlueOval SK was redeemed, effectively ending its obligation to contribute up to $6.6 billion to the joint venture. A Ford subsidiary has taken stakes in two Kentucky battery plants and assumed the DOE promissory note tied to one of those facilities. The loan carries an annual interest rate of 4.814%, with interest-only payments due quarterly until January 15, 2030. After that, Ford will begin paying down the loan with both principal and interest until July 15, 2040. The automaker is required to maintain at least $4 billion in liquidity, which can include cash or available funds.
The timing of this restructuring is critical as Ford shifts its focus from solely electric vehicle (EV) batteries to energy storage systems. The company has been grappling with deep EV losses and a softer market. In the first quarter, Ford's Model e EV unit posted a $777 million EBIT loss, and the company expects full-year losses for that unit to range between $4.0 billion and $4.5 billion in 2026.
Ford Energy, the company's energy storage arm, recently announced a five-year agreement with EDF power solutions North America to supply up to 4 GWh per year of Ford Energy DC Block batteries, with deliveries expected to start in 2028. Lisa Drake, who heads Ford Energy, noted that the deal underscores the need for 'industrial-scale manufacturing discipline.' Tristan Grimbert, CEO of EDF North America, emphasized that supply-chain reliability is 'paramount.'
Investors have taken a fresh look at Ford's storage business, with shares rising 13% last week. Morgan Stanley has highlighted Ford's licensing deal with CATL on battery technology as a key advantage. The company is investing $2 billion into its energy storage business and aims to begin customer deliveries by late 2027.
The DOE loan adds long-term liabilities to Ford's balance sheet, but the company's financial position has strengthened. Ford reported first-quarter revenue of $43.3 billion, net income of $2.5 billion, and adjusted EBIT of $3.5 billion. The company raised its full-year adjusted EBIT outlook to a range of $8.5 billion to $10.5 billion. However, if storage demand, execution, or car pricing falls short, the recent stock rally could reverse quickly.
In other corporate news, Ford announced that global CMO Lisa Materazzo will step down on June 1, with Dean Stoneley taking over as interim CMO. CEO Jim Farley said Stoneley brings digital and product-marketing experience to the role.
As Ford navigates the transition from EVs to broader energy storage, the market will be watching closely to see if the company can leverage its battery business beyond just electric vehicles.
