The End of the Lightning Experiment and the Rise of EREVs

After reporting billions in losses within its “Model e” EV division, Ford is officially pivoting away from a “full EV or nothing” approach.

Mounting Losses: Ford’s EV segment lost over $5 billion in 2024. In November 2025 alone, EV sales plummeted by 60.8%, signaling that the consumer appetite for first-generation electric trucks has cooled significantly.

The EREV Solution: The next generation of the F-150 Lightning will utilize an Extended-Range EV (EREV) architecture. These vehicles use a small onboard gas engine as a generator to charge the battery, offering the benefits of electric drive without the “range anxiety” associated with pure battery EVs.

Manufacturing Realignment and Battery Repurposing

Ford is aggressively reorganizing its North American manufacturing footprint to prioritize what is currently selling: gas and hybrid engines.

Plant Conversions: The Tennessee Electric Vehicle Center will be converted into the Tennessee Truck Plant to build new gas-powered models by 2029. Similarly, the Ohio Assembly Plant will become a hub for Ford Pro, assembling hybrid commercial vans instead of the previously planned EV versions.

Battery Energy Storage (BESS): To avoid idle capacity in its massive battery plants in Kentucky and Michigan, Ford is launching a battery storage business. This business will serve grid-scale utility customers and data centers, which are seeing a surge in power demand due to the AI boom.

2030 Vision: A Diversified Powertrain Mix

Ford CEO Jim Farley is doubling down on a “profit-positive” overhaul, focusing on a more flexible future that isn’t dependent solely on pure electric adoption.

50% Hybrid/EV Goal: By 2030, Ford expects 50% of its global volume to be a mix of hybrids, EREVs, and full EVs—a significant jump from the 17% seen in 2025.

Universal EV Platform: Future EV development will focus on a new, low-cost “Universal EV Platform” designed for smaller, more efficient vehicles, which Ford believes will tap into a broader customer base than its expensive first-generation electric trucks.

Summary

Ford’s $19.5 billion strategic pivot marks a historic moment in the automotive industry’s transition. By acknowledging that pure EV adoption has hit a plateau, Ford is positioning itself as a leader in hybrid and EREV technology, while simultaneously entering the lucrative energy storage market. The move reflects a pragmatic approach: prioritizing current cash flow from hybrids and gas trucks to fund the high-tech, lower-cost electric future of 2030.