Ford is in discussions with the Chinese giant BYD to supply batteries for some of the Detroit automaker’s hybrid vehicle models, people familiar with the matter told the WSJ on Thursday.
The two companies are exploring arrangements that could include Ford importing BYD batteries to its factories outside the United States, the people said.
WSJ‘s report added that negotiations remain ongoing with a deal still unconfirmed.
A Ford spokesman told the outlet that the company talks “to lots of companies about many things.” A BYD spokesman declined to comment.
Chinese automakers remain effectively blocked from the US market due to steep tariffs imposed by the White House and an impending ban on certain software in new vehicles.
Hybrid Push
The talks come as Ford accelerates its shift away from fully electric vehicles toward hybrids amid weakening EV demand.
Last month, the Jim Farley-led automaker announced it would take approximately $19.5 billion in charges primarily tied to its EV business.
Farley said Ford’s EV models priced between $50,000 and $80,000 were simply not selling.
Ford‘s hybrid sales rose 18% year over year in the fourth quarter of 2025 to approximately 55,000 units.
Existing Ties
The two automakers have an established relationship.
In 2020, Ford began sourcing BYD batteries in China for vehicles produced through its joint venture with state-owned Changan Automobile.
BYD and the world’s largest EV battery maker CATL, together installed 575.2 GWh of EV batteries globally from January through November 2025, representing 54.9% of the worldwide total, according to SNE Research.
South Korea’s LG Energy Solution ranked third with 9.3% market share.
BYD’s Expansion
BYD announced last week it would launch updated versions of four plug-in hybrid models in China this month featuring extended-range batteries.
The new variants of the Qin PLUS DM-i, Qin L DM-i, Seal 05 DM-i, and Seal 06 DM-i will offer a combined driving range of 2,110 kilometers, including more than 210 kilometers of fully electric range.
The Chinese automaker has also gained significant market share in Europe.
BYD sold 26,265 hybrid and fully electric vehicles across 18 European markets in December 2025, more than triple the 7,440 units sold in the same month a year earlier, according to registration data compiled by EV.
