Ford is Reportedly in Talks with BYD to Source Batteries for Hybrids Made Outside of the U.S.

• The American automaker is reportedly looking at its Chinese rival to obtain batteries for hybrid models that could be sold worldwide.

• This has caused some pushback in the U.S., notably from members of the government.

• Ford already sources batteries from BYD and CATL for models manufactured in China.

Reports suggest Ford is currently talking to BYD, the world’s largest manufacturer of electric vehicles, in order to secure a supply of batteries for future hybrid models manufactured outside of the United States.

Indeed, sources familiar with the issue have told the Wall Street Journal that the automaker intends to use Chinese batteries in these upcoming models, which are to be sold globally, possibly including North America.

This latter point makes these talks different from previous ones, which pertained only to vehicles meant for the Chinese market.

In fact, BYD has been supplying Ford with batteries since 2020, for its models manufactured in China in collaboration with Changan.

In addition, Ford also sources batteries from CATL, another large Chinese battery maker.

The same sources also say that even if the deal goes through, the majority of hybrid Ford vehicles sold in North America will continue to be manufactured in the United States.

Nevertheless, these rumours have earned the automaker some criticism, most notably from members of the Trump administration, such as White House trade adviser Peter Navarro, who said online: “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?”

Someone else who expressed his disapproval is House China Panel Chair John Moolenaar, who said that Ford “should work with our allies, not our adversaries” and that partnering with a second Chinese battery supplier would “diminish Ford’s status as an iconic American company”.

Earlier this week, Ford announced plans to launch a plug-in hybrid version of the Bronco SUV in China which could use these batteries, but there are currently no plans to bring this model to the North American market.

Interestingly, this model will employ the newly popular extended range electric vehicle (EREV) powertrain configuration, which means it could preview the next F-150 Lightning pickup.

In these powertrains, the gasoline engine acts only as a generator, leaving the electric motors to power the vehicle at all times.

At the moment, Ford hasn’t confirmed whether talks are ongoing with BYD, and the Chinese automaker also remained silent on the matter.

Source: Automotive News