Jaguar Land Rover could work with Chinese car manufacturer BYD to lock up a supply of batteries from a facility in the UK.

A source with information on the matter says that BYD is looking at a host of locations across Europe to build batteries. Jaguar Land Rover chief executive Ralf Speth has previously said the UK needs its own battery cell production.

It is understood that the UK formally leaving the European Union on January 31 is delaying BYD’s decision. The source added that JLR and BYD are also investigating whether to collaborate on electric propulsion development as part of the supply deal. In addition, the Chinese company is said to prefer a more structured agreement to work together with JLR rather than establishing a straight supplier relationship.

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The Faraday Institute added to the push for UK production of battery cells in a report issued last year.

“Within a year, most car producers and battery manufacturers will make their decisions about where in Europe the next generation of gigafactories will be built. Without urgent action, the UK is in danger of losing out in the race,” the institute said, Auto News reports.

While BYD is best known for selling electric buses in Europe which it builds in factories located in Hungary and France, it will kick off sales of the all-electric Tang SUV in Norway later this year. Jaguar Land Rover is also pushing forward with its EV plans and will soon follow up the all-electric I-Pace crossover with an electric successor to the Jaguar XJ sedan.