Ford-BYD talks could boost hybrid EV production
US automaker Ford is reportedly in discussions with Chinese electric vehicle giant BYD to source batteries for some of its hybrid vehicle models, according to people familiar with the matter, News.Az reports, citing The Wall Street Journal.
The terms of the potential agreement are still under negotiation, with some sources suggesting that Ford could import batteries from BYD to its plants outside the United States. However, officials emphasized that talks are ongoing and a deal may not ultimately be reached.
If finalized, the agreement would link Ford with China’s largest automaker, BYD, a company that has raised concerns within the American auto industry due to its ability to manufacture affordable vehicles with advanced technology.
For Ford, the partnership would help address a critical battery supply challenge as the company shifts focus away from fully electric vehicles while expanding its hybrid vehicle lineup. BYD, known for its expertise in premium automobile batteries, could supply the needed components.
Before becoming a global EV powerhouse, BYD had an established battery manufacturing business producing batteries for hybrid vehicles. While most of its batteries are still made in China, the company is expanding production in Southeast Asia, Europe, and Brazil.
Last month, Ford announced it would halt EV production and take an estimated $19.5 billion charge mainly linked to its EV business, noting that by 2030, hybrid, extended-range plug-in hybrid, and fully electric vehicles are expected to make up roughly half of its global sales. The automaker also plans to increase the availability of gas-powered cars alongside hybrid models, which requires more batteries suitable for hybrid vehicles.
While BYD has produced some batteries for commercial vehicles at its California bus plant, it has not yet made batteries for passenger cars in the US.
The news drew criticism from US President Donald Trump’s trade adviser Peter Navarro, who commented on X (formerly Twitter), questioning Ford’s plan:
“So Ford wants to simultaneously prop up a Chinese competitor’s supply chain and make it more vulnerable to that same supply chain extortion? What could go wrong here?”
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