US automaker Ford is in talks with Chinese electric vehicle maker BYD over a potential agreement to source batteries for its hybrid models built outside the United States, according to persons familiar with the discussions. While the two companies are still negotiating terms, they have not finalized an arrangement, and it remains possible that no deal will be reached.
Ford and BYD already collaborate in China, where the automaker introduced the electric Bronco SUV last month. Both the extended-range electric version and the fully battery-powered Bronco utilize BYD’s blade battery technology. In April 2021, Ford launched its locally produced Mustang Mach-E in China, equipping early deliveries with BYD-manufactured ternary lithium batteries from its Xi’an facility. Unlike the blade batteries, these 811 chemistry cells were chosen for the Mach-E, which experienced supply constraints in early 2022 due to COVID-related disruptions.
In China’s battery market, BYD ranks second in lithium-iron-phosphate (LFP) installations, recording 19.04 gigawatt-hours (GWh) in November, or a 25.28% share, according to data from the China Automotive Battery Innovation Alliance. The leading supplier installed 28.09 GWh that month, capturing 37.31% of the LFP segment. BYD’s presence in the ternary-lithium sector remains minimal and does not feature prominently in public rankings.
Meanwhile, Ford is also developing its own battery capacity in the U.S. In February 2023, the company announced plans to build a $3.5 billion LFP plant in Michigan using technology licensed from the country’s top battery supplier. The facility is expected to begin production this year and will supply cells for an upcoming $30,000 all-electric pickup. That project has drawn scrutiny from U.S. lawmakers, who have launched inquiries into the deal.
BYD currently manufactures some commercial-vehicle batteries at its California bus facility but has not yet begun producing passenger-vehicle cells in North America. Together, BYD and the largest Chinese battery maker accounted for more than half of global electric-vehicle battery installations through November 2025.
Source: CNEV Post
