Towards a Hybrid Alliance Between Ford and BYD?

Ford is negotiating with BYD for the supply of batteries for its hybrid models and to strengthen its global energy strategy.

Ford has officially entered into discussions with Chinese manufacturer BYD, the global leader in electric and hybrid vehicle batteries, for a supply agreement for lithium-ion batteries intended for certain hybrid models of the brand. If the agreement materializes, it would primarily involve Ford factories located outside the United States, illustrating the American manufacturer’s desire to secure its supply chains in the face of global competition and geopolitical tensions.

This potential collaboration is part of Ford’s strategy to develop its hybrid and PHEV vehicles, a rapidly growing segment amidst the energy transition. BYD, known for its LFP and ternary batteries, already provides high-performance solutions for several electric and hybrid vehicles in China and internationally, making it a natural strategic partner.

A sensible alliance?

Ford and BYD already have shared experience in the Chinese market. The Bronco PHEV manufactured in China uses BYD batteries, while the Chinese Mustang Mach-E opted for a different technology. These collaborations demonstrate the technical and commercial complementarity between the two groups.

A partnership would strengthen Ford’s supply security for hybrid batteries while allowing BYD to expand its international presence. Investors reacted positively to this rumor, leading to a rise in BYD’s stock in Hong Kong. However, no official signature has been announced yet, and production on American soil remains a sensitive issue.

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In a rapidly changing automotive market marked by the transition to hybrids and electric vehicles, this possible Ford-BYD alliance could represent a major strategic turning point, combining cutting-edge technology, international expansion, and leadership in the battery market.

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