Ford scraps F-150 Lightning in favour of 'next-generation' hybrid, says "the business case has eroded"
In an announcement on December 15, Ford revealed a series of actions to "sharpen its Ford+ plan" and drive profitable growth. These included ending production of the F-150 Lightning electric truck, expanding its powertrain mix and launching a battery energy storage system business.
The automaker said it is "shifting to higher-return opportunities" and "executing a decisive redeployment of capital to meet customer demand and drive profitable growth".
“This is a customer-driven shift to create a stronger, more resilient and more profitable Ford,” said Ford president and CEO Jim Farley. “The operating reality has changed, and we are redeploying capital into higher-return growth opportunities."
The future of the F-150 Lightning
Despite being America’s best-selling electric pickup truck, the business case for the F-150 Lightning has "eroded", Ford explained. This, it said, has been the result of lower-than-expected demand, high costs and regulatory changes.
Ford had already alluded to issues with the profitability of the F-150 Lightning in comparison with other models when it announced it would pause assembly of the electric pickup to prioritise ICE and hybrid F-Series truck production as it grappled with the fallout from the fire at aluminium supplier Novelis' hot mill in Oswego, New York.
As well as the Lightning using more aluminium than other F-Series models, Ford also pointed towards the increased profitability of other models as a driver for this move. All of the hourly employees at the Rouge Electric Vehicle Center have already been transferred to the truck plant on the same complex to form part of the new 1,200-strong third crew that Ford established at the plant to increase production of the F-150 and Super Duty in 2026.
Production of the F-150 Lightning will officially end this year, and the F-150 Lightning Extended Range Electric Vehicle (EREV) will take its place. Ford has described this next-generation EREV as "a truck engineered to redefine what an electric pickup can do". It is expected to offer "the seamless, instant power of an electric powertrain and the freedom of a generator-backed estimated range of more than 700 miles".
Ford noted that, unlike traditional hybrids, the F-150 Lightning EREV will be propelled entirely by electric motors.
"The F-150 Lightning is a groundbreaking product that demonstrated an EV pickup can still be a great F-Series," said Doug Field, chief EV, digital and design officer at Ford. "Our next-generation F-150 Lightning EREV will be every bit as revolutionary. It delivers everything Lightning customers love – near instantaneous torque and pure electric driving. But with a high-power generator enabling an estimated range of 700+ miles, it tows like a locomotive. Heavy-duty towing and cross-country travel will be as effortless as the daily commute."
The F-150 Lightning EREV, like its predecessor, will be assembled at the Rouge Electric Vehicle Center in Dearborn, Michigan, with more details to come surrounding the timing of its launch.
Expanding powertrain choice
The end of F-150 Lightning production marks a broader shift in Ford's strategy, aiming to expand powertrain choice through a range of EREVs while focusing its pure electric vehicle development on its flexible Universal EV Platform for smaller, affordable models.
By 2030, Ford expects approximately 50% of its global volume to be hybrids, EREVs and electric vehicles, compared with just 17% in 2025.
The automaker will concentrate its North American electric vehicle development on its new, "low-cost, flexible" Universal EV Platform. This architecture will focus on producing a "high-volume family of smaller, highly efficient and affordable electric vehicles".
In 2027, this platform is expected to introduce its first vehicle – a fully connected mid-sized pickup truck assembled at Ford's Louisville Assembly Plant in Kentucky.
The company is also changing how it operates in Europe. "I was appointed to lead Ford in Europe with a clear mission: to evolve our strategy, accelerate the transformation of our product range and reignite the passion for our brand," said Jim Baumbick, president of Ford Europe. "Europe is the frontline of our industry’s global transformation – a region where new competitors are redefining cost and value, where regulation is demanding an accelerated path to zero emissions, and the pace of change is unrelenting... Europe remains a vital element of Ford’s global strategy, and how we choose to compete here will write the playbook for how Ford wins for the next generation."
This follows the announcement that two Ford-branded EVs will be manufactured in Europe from 2028, powered by Renault's Ampere platform.
Ford no longer intends to produce a previously planned new electric commercial van for Europe, but has said it will continue to maintain its full lineup of electrified vans for the European market. It said it also plans to replace a planned electric commercial van for North America with a new, affordable commercial van — with gas and hybrid models — which will be manufactured at Ford’s Ohio Assembly Plant. It will also repurpose its facilities in Tennessee and Ohio to "expand its truck and van lineup leadership".
According to Ford, these moves will complement its plan to launch five new affordable vehicles by the end of the decade, four of which will be assembled in the US. It added that it also plans to expand ICE, hybrid and extended-range electric options across its portfolio with nearly every vehicle featuring a hybrid or multi-energy powertrain choice by 2030.
A new battery energy storage system business
Additionally, Ford has announced it will be launching a new business to "capture the large demand for battery energy storage from data centres and infrastructure to support the electric grid". It plans to repurpose existing US battery manufacturing capacity in Glendale, Kentucky, to serve the rapidly growing battery energy storage systems market.
The Kentucky site will be converted to manufacture 5 MWh+ advanced battery energy storage systems, with Ford planning to produce LFP prismatic cells, battery energy storage system modules and 20-foot DC container systems at this facility. Ford will invest approximately $2 billion over the next two years to scale this business.
Recently, Ford, SK On, SK Battery America and BlueOval SK entered into a joint venture disposition agreement, under which a Ford subsidiary will independently own and operate the Kentucky battery plants, while SK On will fully own and operate the Tennessee battery plant.
Ford will also use BlueOval Battery Park Michigan in Marshall, Michigan, to produce smaller Amp-hour cells for use in residential energy storage solutions, with this plant on track to begin manufacturing LFP prismatic battery cells in 2026 to power the aforementioned mid-sized electric truck from 2027.
