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Legacy OEM, Ford Motor, is holding discussions with China’s BYD about a possible partnership that would allow the U.S. automaker to purchase batteries for some of its hybrid vehicle models.
The talks are ongoing and remain fluid, with no guarantee that the two parties will arrive at a deal. The somewhat unlikely alliance could allow Ford to import batteries from BYD for use in vehicle production at factories located outside the United States.
If an agreement is reached, it would link Ford with the world’s largest Chinese automaker, a company that has raised alarms across the U.S. auto industry for its ability to manufacture affordable vehicles packed with advanced technology.
The discussions come as Ford retools its product strategy, scaling back spending on fully electric vehicles amid weaker demand and taking roughly $19.5 billion in charges largely related to its EV business. Ford has instead placed greater emphasis on hybrids, extended-range plug-in hybrids, and gas-powered vehicles, with a goal of having about half of its global sales come from electrified models by 2030.
“We talk to lots of companies about many things,” a Ford spokesperson said.
BYD’s roots lie in battery manufacturing, and the company remains one of the world’s largest producers of automotive batteries, including those used in hybrid vehicles. While most of its battery production is based in China, BYD is expanding capacity overseas as it grows in markets such as Europe, Southeast Asia, and Brazil.
Bernstein Research estimates BYD’s battery shipments rose 47% last year to 286 gigawatt-hours.
Speculation around the possible alliance drew criticism from President Trump’s former trade adviser Peter Navarro, who questioned the risks of relying on a Chinese supply chain. Taking to X, he said:
“So @ford wants to simultaneously prop up a Chinese competitor’s supply chain and make it more vulnerable to that same supply chain extortion? What could go wrong here?”
This is not the first time Ford has chosen to work with a Chinese company- evidenced through a partnership with Chinese battery manufacturer Contemporary Amperex Technology, a project that has drawn scrutiny from Republican lawmakers.
Ford insists that hybrids are gaining traction with consumers; hybrid sales rose 18% in the fourth quarter of last year to about 55,000 vehicles. Speaking at the Detroit Auto Show this week, Chief Executive Jim Farley emphasized flexibility for buyers.
“I think our message is really simple,” Farley said. “Give Americans choice.”
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