December 15, 2025 - Ford Takes $20B Hit on EVs

This is the Telemetry Transportation Daily for December 15, 2025, and I'm Sam Abuelsamid, Vice President of Market Research for Telemetry.  

Ford announced another major restructuring of its electrification plans that will include $14 billion in non-cash charges and $5.5 billion in cash charges this quarter. The changes include the cancellation of an electric truck that was to have been produced at the new BlueOval City factory in Tennessee, ending production of the current F-150 Lightning and ending production of NMC batteries at the Kentucky factory that was formerly part of its now dissolved joint venture with SK On. 

Instead of an electric truck, the Tennessee factory will instead build new gas trucks that are intended to be more affordable. The Kentucky battery plant will end production of NMC pouch cells since they are no longer required for the Lightning, and the workers will be laid off. The plant will be retooled to produce LFP prismatic cells targeted at the stationary energy storage system market. This is a market that is growing with significant demand from all the new data centers that are being constructed. The now Ford-owned plant is expected to resume production in 2027 and will rehire staff at that time. 

Ford also announced when it launches a next-generation Lightning, it will be an extended-range EV. It will feature electric propulsion with a gas-powered generator to extend the overall range to 700 miles and enable much more convenient long-distance towing. No launch schedule was announced for the next Lightning, but it will be built at the Rouge Electric Vehicle Center in Dearborn. No other technical details of the Lightning EREV were announced. 

A previously announced electric commercial van to be built in Ohio has also been canceled. It will be replaced with an affordable van with gas and hybrid options. There are no announced changes to the plans for the next-generation universal EV platform that will launch by early 2027 with a midsize pickup truck. 

With all of these changes, Ford hopes to make its Model E division profitable by 2029 and have half its sales be electric, hybrid, or extended range EV by 2030. 

Thanks for listening.