Chinese manufacturer BYD has to face its revenues going down as the country’s government reduces EV subsidies and more and more players are entering the EV market. That’s why the carmaker intends to focus more on its battery business, Reuters has learnt.
In fact, stepping up its battery unit is not a new move for BYD. It rather represents a return to its roots, as the Chinese company started out as a battery producer. According to the above-mentioned report, the carmaker plans to extend its battery production in order to sell a part of its batteries to third manufacturers. Even the possibility of a spinoff for the battery unit is said to be thinkable. BYD’s strenth is its vertically integrated supply chain model that brings production costs significantly down.
As reported, BYD is said to be one of several Chinese manufacturers that are headhunting battery specialists from South Korean companies like Samsung SDI, LG Chem and SK Innovation. Regarding the potentially new strategy, that would indeed make sense.