Ford in Talks With BYD to Source Hybrid Batteries: WSJ

Ford Motor is in discussions with China’s BYD to secure battery supplies for hybrid vehicles produced outside the United States, a move that reflects Ford’s pivot toward hybrid and plug-in hybrid powertrains and has drawn scrutiny from US policymakers concerned about supply chain exposure and global competition, according to The Wall Street Journal.

The talks, which remain preliminary and may not result in a finalized agreement, would involve the use of BYD-manufactured batteries in Ford hybrid models for non-US markets. Sources cited by the Journal said the discussions are part of Ford’s broader effort to recalibrate its electrification strategy amid slower global demand for fully electric vehicles and mounting losses in its EV business.

Ford confirmed it is in dialogue with multiple companies across the electrified vehicle supply chain. “We discuss many potential agreements with various companies in the sector,” the automaker said, according to the Journal. BYD declined to comment.

The potential battery supply agreement aligns with a strategic repositioning announced by Ford in December, when the company said it would scale back investment in all-electric vehicles while accelerating the development and sales of hybrids and plug-in hybrids. Ford has said it aims for electrified vehicles—including hybrids, plug-in hybrids, and EVs—to account for at least 50% of global sales by 2030.

Ford’s recalibration reflects a broader industry reassessment of EV timelines as demand growth has moderated across several major markets. The company has reported cumulative losses and charges of roughly US$19.5 billion related to its electric vehicle operations, driven by high development costs, pricing pressure, and slower-than-expected consumer adoption.

In 4Q25, Ford reported an 18% year-on-year increase in hybrid vehicle sales, delivering nearly 55,000 units. Growth was concentrated in sport utility vehicles and pickup trucks equipped with dual powertrains, segments in which Ford has historically maintained strong market positions.

Executives have said hybrids and plug-in hybrids will play a central role as transitional technologies, allowing the company to meet emissions targets and consumer preferences while preserving profitability and flexibility in product planning.

According to the Wall Street Journal, the talks with BYD extend beyond a supplier relationship and could include cooperation related to vehicle development or assembly, although the primary focus remains battery supply for hybrid models sold outside the United States.

One option under consideration involves shipping batteries from China to Ford manufacturing plants in other regions. Such an approach would allow Ford to avoid regulatory and political constraints tied to the use of Chinese-made components in US-produced vehicles, while also accessing BYD’s manufacturing scale and cost structure.

Despite the preliminary nature of the discussions, the possibility of a deeper supply relationship between Ford and BYD has prompted criticism from figures associated with former President Donald Trump’s administration. Concerns raised in Washington center on industrial competitiveness, supply chain security, and the growing role of Chinese companies in global electrified vehicle markets.

Peter Navarro, who served as White House trade adviser during the Trump administration, publicly criticized the potential partnership. In remarks cited in coverage of the talks, Navarro accused BYD of engaging in predatory pricing practices and said the company’s long-term objective was to dominate global production of electric and hybrid vehicles.

The US government has previously imposed tariffs and enacted incentive programs designed to encourage domestic and allied production of batteries and critical minerals. While the Ford-BYD discussions reportedly exclude US production, the broader implications for global supply chains have drawn attention from industry observers and policymakers.

BYD’s appeal as a potential supplier is rooted in its scale and vertical integration. Before emerging as one of the world’s largest producers of electric vehicles, the company built a substantial battery manufacturing business that now supplies both internal vehicle programs and external customers.

According to data cited by Bernstein Research, BYD’s annual battery production capacity exceeds 286 gigawatt-hours, representing year-over-year growth of approximately 47%. The company produces a range of battery chemistries and formats used in battery-electric, hybrid, and plug-in hybrid vehicles.

Although BYD does not currently supply batteries for passenger vehicles produced in the United States, it operates manufacturing facilities across Asia and has expanded capacity in Brazil and Europe. These international operations position the company to serve automakers seeking battery supplies outside the US market.

The companies already have a history of collaboration in China. Since 2020, Ford has sourced BYD batteries for vehicles produced through its joint venture with Changan Automobile. That partnership has provided Ford with operational experience using BYD battery technology in mass-market vehicles.

More recently, the Ford Bronco plug-in hybrid launched in China has been equipped with batteries produced by Findreams, a BYD subsidiary focused on battery manufacturing. The use of Findreams batteries in the Bronco PHEV has been cited as a reference point for potential expansion of the relationship to other markets.

Industry sources have noted that BYD approached Ford in subsequent years to discuss supplying batteries for vehicles sold beyond China, reflecting BYD’s strategy of positioning itself as a global battery supplier in addition to an automaker.

The discussions underscore the challenges facing automakers as they navigate electrification strategies in a shifting policy and market environment. Demand volatility for EVs has prompted manufacturers to adjust product plans, while competition among battery suppliers has intensified as capacity expands worldwide.

Ford is not alone in reassessing its electrification roadmap. Several automakers have revised EV production targets or delayed model launches in response to slower sales growth and pressure on margins. Hybrids have gained renewed attention as a means of meeting emissions requirements without relying exclusively on large battery packs and charging infrastructure.

BYD’s growing role as both a vehicle manufacturer and a battery supplier has made it a focal point in these discussions. As the largest global seller of electrified vehicles by volume, the company’s scale has enabled rapid cost reductions, which in turn influence pricing dynamics across the industry.

For US and European automakers, partnerships with Chinese suppliers raise strategic questions about long-term competitiveness, technology access, and supply chain resilience. These considerations are likely to shape negotiations as companies weigh the benefits of collaboration against political and regulatory risks.