- Ford is reportedly in early talks to source batteries from BYD.
- Move follows Ford canceling projects and taking a $19.5B charge.
- BYD has rapidly expanded battery production beyond China.
Ford may be pulling back on its EV spending, but it isn’t walking away from electrification. Instead, the company may be taking a different approach, and that path could lead through China. Specifically, Ford is reportedly in early talks with BYD, the Chinese automaker that recently overtook Tesla as the world’s top EV producer, to source batteries for its next hybrid models.
According to a report from the Wall Street Journal citing sources familiar with the discussions, nothing is finalized, and a deal may not materialize. But if it does, one idea under consideration is for Ford to begin importing BYD batteries for use in its factories outside the United States.
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In response to the report, Ford didn’t confirm or deny the potential partnership. “We talk to lots of companies about many things,” the company told the newspaper. That kind of non-denial tends to say a lot without saying much at all.
BYD, while primarily known for its battery manufacturing in China, has been expanding its footprint globally, building production capacity in Brazil, Europe, and Southeast Asia.
Why BYD Might Be the Answer
The timing of these talks aligns with a major pivot inside Ford. The company recently took a $19.5 billion write-down after scaling back several electric vehicle initiatives, including high-profile battery joint ventures with South Korean firms SK On and LG Energy Solution. Alongside a renewed emphasis on internal combustion models, Ford plans to grow its hybrid lineup, an area where BYD already excels.
The Chinese company is one of the world’s largest producers of hybrid vehicles and battery packs for cars. Instead of launching new factories or reviving shelved partnerships, Ford might simply buy batteries directly, streamlining its supply chain as it targets a goal of having hybrids, plug-in hybrids, and EVs make up half of its global sales by 2030.
Will Washington Push Back on a BYD Deal?
Any such deal is unlikely to go over well with the Trump administration. Shortly after reports surfaced that Ford was speaking with BYD, top Trump trade advisor Peter Navarro hit out at the 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?,” he wrote on X. “What could go wrong here?”
Meanwhile, Donald Trump took a different tack. Speaking to reporters in Detroit, the president said he welcomed foreign firms, including those from China and Japan, setting up shop in the States, as long as they employed American workers.
“You know, those tariffs are keeping the foreign autoworkers. Now, if they want to come in and build the plant and hire you and hire your friends and your neighbors, that’s great. I love that,” said Trump. ” Let China come in. Let Japan come in. They are. And they’ll be building plants, but they’re using our labor.
