Ford is shifting its electric vehicle strategy, canceling the all-electric F-150 Lightning and focusing more on hybrid trucks and battery storage for data centers and the power grid.

The company expects nearly $20 billion in charges through 2027, with over $5 billion in cash spent in the next two years, as it pivots to meet customer demand for more affordable, practical vehicles.

Future F-150 Lightnings will be extended-range EVs combining electric motors with gasoline engines, while Ford will still launch a new line of affordable EVs, starting with a mid-sized electric pickup in 2027.

The company is repurposing its Tennessee EV plant for gas-powered trucks, ending its joint battery venture with SK On, and investing $2 billion to produce stationary batteries in Kentucky, resulting in temporary layoffs, Axios has reported.

Ford aims for 50% of its global sales to be hybrids, extended-range EVs, or full EVs by 2030 and expects these changes will make its EV business profitable by 2029 while raising its year-end profit outlook to $7 billion.