Ford Motor is in discussions with Chinese electric vehicle and battery maker BYD over a potential partnership to supply batteries for hybrid vehicles, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
If an agreement is reached, Ford would likely source batteries from BYD for production at plants outside the United States, the report said. The talks are ongoing and no final agreement has been reached, with sources cautioning that the discussions could still fall through.
See also: Ford CEO Says $30,000 EV Prototypes Running on Skunkworks Platform
Under the proposed arrangement, BYD would supply batteries for some of Ford’s hybrid models, though details such as volumes, chemistry and timelines are still under negotiation, according to the report.
Ford and BYD already collaborate in China, where Ford recently expanded its electrified vehicle offerings. One month ago, Ford launched an electric version of its Bronco sport utility vehicle in the Chinese market. Both the extended-range electric and battery-electric variants are equipped with BYD’s blade batteries, which are based on lithium iron phosphate (LFP) chemistry.
See also: Ford Motor Targets 2028 Launch for Level 3 Hands- and Eyes-Off Driving System
Ford also produces the Mustang Mach-E locally in China, having launched the model in April 2021 with first customer deliveries beginning later that year. The Mach-E uses ternary lithium batteries supplied by BYD, primarily manufactured at the company’s Xi’an facility in Shaanxi province, rather than BYD’s blade battery design.
BYD is China’s second-largest power battery supplier after CATL, with its portfolio dominated by LFP batteries. In November, BYD installed 19.04 gigawatt-hours of LFP batteries, giving it a 25.28% share of that segment, according to data from the China Automotive Battery Innovation Alliance. CATL led the LFP market with a 37.31% share.
In the United States, Ford has taken a different approach to securing LFP battery supply. In February 2023, the automaker announced plans to build a $3.5 billion battery plant in Michigan using CATL’s technology. The facility is expected to begin production this year and supply batteries for Ford’s planned $30,000 all-electric pickup truck.
See also: Ford Says New Low-Cost EV Platform Will Support Multiple Models and Cut Production Complexity
That project has drawn scrutiny from U.S. Republican lawmakers, who have questioned Ford’s ties to Chinese battery technology, an issue highlighted by the Wall Street Journal.
BYD currently manufactures some batteries for commercial vehicles at its California bus plant but does not produce passenger vehicle batteries in the United States.
