Chinese battery maker BYD’s lithium iron phosphate (LFP) batteries will be featured in an upcoming hybrid model from German luxury automaker Mercedes-Benz, marking a significant expansion of BYD’s presence in the electric vehicle market.
The model in question is a hybrid variant of the Mercedes-Benz GLC SUV, which has been included in China’s Ministry of Industry and Information Technology’s (MIIT) latest catalog of approved models for public comment. This catalog is a crucial step before a vehicle can be sold in China, and the public can provide feedback on the model between May 12 and May 17.
The Mercedes-Benz GLC SUV will be manufactured by Beijing Benz, a joint venture between Mercedes-Benz and BAIC Motor, with production slated to take place in the Beijing Economic-Technological Development Area. The vehicle will utilize LFP batteries supplied by Qinghai FinDreams Battery Co Ltd, a company fully owned by BYD’s battery subsidiary FinDreams Battery.
This collaboration marks the first time Mercedes-Benz will use BYD’s batteries, though not in a fully electric vehicle. Previous reports suggested that a production model of the Mercedes-Benz Concept CLA Class, expected to launch in 2024, would also be powered by BYD’s LFP batteries.
BYD, China’s second-largest power battery maker after CATL, has primarily supplied batteries for its own new energy vehicle (NEV) models, including plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs). However, the company has been expanding its partnerships with other automakers, such as Nio, to supply batteries for their electric vehicles.
In April, BYD’s power battery installations in China reached 9.95 GWh, accounting for 28.37 percent of the market share, placing it second behind CATL’s 44.65 percent, according to the China Automotive Battery Innovation Alliance (CABIA).
