Ford Motor is in deep discussions with BYD Company regarding the establishment of a partnership. According to the plan, this American automaker will procure batteries from the Chinese automotive giant for some of its hybrid models.
On January 15th, the Wall Street Journal reported that informed sources revealed that both parties are still discussing specific cooperation models. One of the current proposals is that Ford will transport the batteries procured from BYD to its factories located outside the United States for production. Negotiations are still ongoing, and whether a final deal can be reached remains uncertain.
If an agreement is reached, Ford will team up with the largest Chinese automotive company that possesses cutting-edge technology and cost advantages. As Ford reduces its pure electric vehicle business and increases investment in hybrid models, the company urgently needs high-quality battery suppliers, and BYD has mature manufacturing capabilities in this field.
Reports indicate that Ford announced last month that it would shift its strategic focus from pure electric vehicles to hybrid models, aiming for hybrids, plug-in hybrids, and pure electric vehicles to account for about half of its global sales by 2030.
<h2>BYD's Battery Capacity Continues to Expand</h2>
Before becoming one of the largest automotive manufacturers in the world, BYD had established a strong battery manufacturing business, including batteries for hybrid models.
The company currently mainly produces batteries in China but is expanding its capacity at overseas factories to tap into markets in Southeast Asia, Europe, and Brazil. According to Bernstein Research, BYD's battery shipments grew by 47% last year, reaching 286 gigawatt-hours.
BYD previously produced commercial vehicle batteries at its bus manufacturing plant in California but has not yet produced passenger vehicle batteries in the United States.
<h2>Ford Accelerates Hybrid Layout</h2>
Ford is facing challenges with slowing demand for electric vehicles. Last month, the company announced it would adjust its strategy, expecting to incur $19.5 billion in costs, primarily related to its electric vehicle business.
At the same time, Ford plans to expand its lineup of fuel vehicles and increase options for hybrid models, which requires more batteries suitable for hybrid vehicles.
Sales of Ford's hybrid vehicles have shown growth momentum. In the fourth quarter of last year, the company's hybrid vehicle sales increased by 18% year-on-year, reaching approximately 55,000 units.
At this week's Detroit Auto Show, Ford CEO Jim Farley stated that the company has achieved success with the F-150 hybrid version and now hopes to expand into other hybrid and extended-range models.
<h2>Existing Cooperation Foundation</h2>
This is not the first collaboration between Ford and BYD.
In 2020, Ford began using BYD batteries in China for vehicles produced in its joint venture with state-owned automaker Changan. A few years later, BYD proposed supplying batteries for Ford's vehicles sold in other markets.
It is noteworthy that several American automakers have established partnerships with foreign battery manufacturers. General Motors and Ford have previously formed joint ventures with South Korean companies.
Ford is building a battery plant in Marshall, Michigan, planning to use technology from Chinese battery manufacturer CATL to produce low-cost batteries. The plant is expected to begin operations this year, producing batteries for Ford's upcoming $30,000 pure electric pickup truck

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According to reports, Ford is in deep discussions to procure batteries from BYD for some of its hybrid models. The proposals being explored by both parties include shipping the batteries to Ford's factories outside the United States, but the deal has not yet been finalized. As Ford reduces its pure electric vehicle business and increases its investment in hybrid models, the company urgently needs high-quality battery suppliers, and BYD has mature manufacturing capabilities in this field

- Ford Motor Company is in discussions with BYD to establish a partnership for sourcing batteries for some of its hybrid models.  
- If the agreement is finalized, it will enhance Ford's access to high-quality battery supplies as the company shifts focus from pure electric vehicles to hybrid models, aiming for hybrids and electrics to comprise about half of global sales by 2030.  
- Meanwhile, BYD is expanding its battery production capabilities globally, having achieved a 47% increase in battery shipments last year, highlighting its strong manufacturing presence in the hybrid battery market.

Ford is in talks with BYD to purchase batteries, with plans including "transporting to factories outside the United States."