Ford could source BYD batteries for hybrid cars
The usually well-informed Wall Street Journal reports on alleged negotiations between Ford and BYD. However, it remains unclear whether the two parties will reach an agreement or if the talks might still collapse.
Although BYD is primarily known in Europe as a manufacturer of battery-electric vehicles and plug-in hybrids, the company is also the world’s second-largest battery producer, trailing only CATL. In fact, BYD was founded in 1995 as a battery company and only became an automotive manufacturer in 2003 after acquiring a struggling carmaker.
Ford announced a strategic realignment as recently as December, discontinuing several electric models and announcing write-offs totalling $19.5 billion. Instead, the company plans to focus heavily on new petrol and hybrid models.
Due to its increased focus on hybrid models, Ford must now seek suitable battery suppliers and is reportedly in talks with BYD. The Wall Street Journal article does not specify which types of hybrids are involved. However, it is likely that larger batteries for plug-in hybrids and range-extender vehicles are primarily under consideration. That said, mild and full hybrids also require batteries, albeit much smaller ones. BYD uses its so-called Blade LFP batteries in its own plug-in hybrids, such as the Seal U DM-i and the Seal 6 DM-i Touring, and thereby circumvents the EU’s additional tariffs on battery-electric vehicles.
Ford declined to comment on the alleged talks with BYD: “We talk to lots of companies about many things,” a Ford spokesperson told the US business newspaper. According to the report, the discussions exclusively concern models that are not manufactured in the US, likely due to the stringent regulations surrounding the import of Chinese batteries into the country. In Europe, however, Ford’s Cologne plant does not currently align with the focus on hybrid models, as only the battery-electric Capri and Explorer are produced there. A better fit could be Ford’s plant in Valencia, Spain, where the Ford Kuga is also built as a full hybrid and a plug-in hybrid. In Craiova, Romania, the Ford Puma is also produced as a mild hybrid. And in Kocaeli, Turkey, plug-in versions of the Transit Custom and Tourneo Custom, among others, are manufactured as well.
Ford and BYD have collaborated for some time: since 2020, BYD batteries have been used in vehicles produced by Ford’s joint venture with Changan in China. Ford is not alone in this; other Western manufacturers also use BYD batteries, for example, Tesla in its Model Y produced in Grünheide.
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