Ford Motor Co. and BYD Co. Ltd. are in early discussions about a potential partnership that could see BYD batteries used in Ford’s hybrid vehicles, according to people familiar with the matter. The talks are ongoing and may not result in a deal, but they underscore Ford’s renewed focus on hybrids as it recalibrates its electric vehicle strategy.
The discussions include several possible structures. One option under consideration is importing BYD-made batteries for Ford vehicles assembled outside the United States, a move that could help the automaker lower costs while avoiding some of the regulatory and political hurdles tied to U.S.-based sourcing.
BYD’s Battery Footprint and U.S. Presence
BYD has grown into the world’s largest electric vehicle manufacturer, producing both battery-electric vehicles and plug-in hybrids. A key advantage has been vertical integration: BYD designs and manufactures its own batteries, primarily in China, while expanding production capacity in overseas markets.
However, BYD has not yet produced passenger-car batteries in the U.S. While it does manufacture batteries for commercial vehicles at its California bus plant, passenger-vehicle battery production remains offshore. That reality shapes the current talks, as any near-term partnership with Ford would likely rely on imports or non-U.S. production sites.
Ford’s Michigan Battery Bet with CATL
At the same time, Ford is pressing ahead with its own battery ambitions. The automaker is building a battery plant in Michigan aimed at producing lower-cost lithium iron phosphate cells, using licensed technology from China’s Contemporary Amperex Technology Co.. Production is expected to begin this year, and the facility is central to Ford’s longer-term EV and energy storage plans.
Together, the CATL-backed Michigan plant and the potential BYD partnership point to a pragmatic approach: mix in-house production with external suppliers to stay competitive on cost and scale.
A Clear Pivot Toward Hybrids
The reported talks arrive shortly after Ford publicly shifted its strategy away from an all-in EV push and toward hybrids and plug-in hybrids. In December, the company said it expects about $19.5 billion in EV-related charges after cancelling or scaling back several large EV programs, citing weaker demand, high costs, and changing regulations.
CEO Jim Farley framed the move as demand-driven, emphasizing higher-return areas such as trucks, vans, hybrids, and battery energy storage. The numbers back that up. In the fourth quarter of 2025, Ford’s hybrid sales rose about 18% to more than 55,000 units, while pure EV sales fell sharply to around 14,500.
Market Reaction and What Comes Next
The report, first published by The Wall Street Journal, had a muted impact on Ford’s stock, which traded slightly higher on the day. Retail sentiment, tracked on Stocktwits, cooled from bullish to neutral as message volume eased.
Whether or not a formal deal emerges, the talks themselves are telling. Ford is signaling flexibility, prioritizing cost control and speed as hybrids take center stage. For BYD, even exploratory discussions with a legacy U.S. automaker mark another step toward deeper global integration in the battery supply chain.
