Why Jim Cramer says Ford's real story isn't trucks or EVs

Why Jim Cramer says Ford's real story isn't trucks or EVs Faizan Farooque Sat, June 20, 2026 at 9:07 PM GMT+7 7 min read F NVDA Ford Motor Company (F) has spent years attempting to convince Wall Street that it merits a valuation higher than that of a traditional auto stock. Even after a strong first quarter, Ford is still judged by the same familiar pressures: price, consumer credit, labor, commodity inflation, and losses on electric vehicles. But Ford’s newest venture suggests another possibility. The automaker may be seeking to hitch a ride on the artificial intelligence infrastructure boom, not by building processors or software or cloud services, but by providing the energy storage devices AI data centers will increasingly need. “I love what Ford is doing with this battery business,” CNBC’s Jim Cramer said. The initial wave of AI trade was for the IT companies. Nvidia (NVDA) became the poster child for the boom as demand for AI chips soared. Cloud companies ramped their data-center spending. Software companies hastened to add artificial intelligence technologies to current products. But the next obstacle for AI is more industrial than it is digital. Data centers are consuming electricity at a rapid pace. The International Energy Agency estimates data center power use globally will quadruple to roughly 945 terawatt-hours by 2030, accounting for a little under 3% of worldwide electricity consumption. Related: Ford analyst identifies big benefits from its latest pivot The agency also forecasts that electricity consumption in data centers will rise by around 15% annually from 2024 to 2030, more than four times the growth in electricity demand in other industries. And the U.S. backdrop is far more urgent. Data centers consumed around 4.4% of total U.S. electricity in 2023 and may consume about 6.7% to 12% by 2028, the Department of Energy stated. That’s a jump in total U.S. data-center power use from 58 terawatt-hours in 2014 to 176 terawatt-hours in 2023, and DOE projects it may be 325 to 580 terawatt-hours by 2028. That’s important to Ford because data centers need more than just electricity generation. They also want reliability. DOE has highlighted on-site power production and storage as part of the solution for data centers and also notes that battery storage is one of the most scalable options available to meet increasing demand. The regulatory backdrop is also working to Ford’s advantage. On June 18, the Federal Energy Regulatory Commission asked the six regional grid operators it regulates to justify or revise pricing for data centers and other significant energy users. FERC said it seeks to accelerate the incorporation of heavy loads while safeguarding ratepayers. Ford is not just launching another energy product. It is moving into a market where AI demand, grid stress, domestic manufacturing, and battery storage are converging. Ford revealed the launch of Ford Energy, a wholly-owned business that would supply U.S.-assembled battery storage systems for utilities, data centers, and large industrial and commercial customers. Ford said the business expects to deploy at least 20 gigawatt-hours a year, with first customer deliveries expected for late 2027. The intricacies of the product matter. Ford claims its operations will cover battery cell manufacture, electrode-coil fabrication, module assembly, container assembly, sales, and service support. Its flagship product, the Ford Energy DC Block, is a typical 20-ft containerized battery energy storage system built on 512 Ah lithium iron phosphate prismatic cells. Ford has two variations: the FE-250, which is a two-hour system, and the FE-450, which is a four-hour system. Car owners caught in government fight that could cost them big Ford begins testing tech that will change Americans’ minds about EVs Edmunds sees major shift on used car prices Ford is also repurposing existing battery-building capacity in Glendale, Ky., to go into the battery-storage industry. The company says its supply chain strategy aims to be consistent with investment tax credit criteria and domestic content rules applicable to grid-scale storage. This is not unconnected to Ford’s wider EV reset. Ford previously announced it will spend some $2 billion over two years to scale up the battery-storage business. The business said the move will provide a diverse revenue stream using “currently underutilized electric vehicle battery capacity.” Ford also shared that the Kentucky location would be repurposed for the production of innovative battery energy storage systems, LFP prismatic cells, modules, and 20-foot DC container systems for data centers, utilities, and large commercial users. But Ford already has one big commercial signal. Ford Energy and EDF power solutions North America on June 19 unveiled a five-year framework agreement, opening the door for EDF to tap into up to 4 GWh per year of Ford Energy DC Block installations. The potential volume is up to 2

Why Jim Cramer says Ford's real story isn't trucks or EVs

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Why Jim Cramer says Ford's real story isn't trucks or EVs

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