BYD, the world’s top seller of electric vehicles, is among several battery suppliers Ford is talking to, said the people, who asked not to be identified revealing internal discussions. No deal is imminent, they said.
The discussions are aimed at supplying Ford’s international factories with batteries for the automaker’s expanding line of hybrids, the people said.
The hybrids built in Ford’s overseas factories would be exported worldwide, including to the US, the people said. But most hybrids Ford sells in the US would continue to come from factories in North America.
BYD didn’t immediately respond to a request for comment. A spokesperson for Ford said the automaker “talks to lots of companies about many things. We don’t comment on rumors or speculation about our business.”
Ford has sourced batteries from BYD since 2020 for its joint-venture Chinese factories with state-owned Changan Automobile Co.
Hybrid sales have grown worldwide as the market for pure electric vehicles has slowed. Ford is ramping up hybrid production and has plans to roll out more gas-electric models.
At the Detroit Auto Show earlier this week, the American automaker revealed plans to introduce a plug-in hybrid version of its Bronco sport utility vehicle in China. It will utilise extended-range electric vehicle, or EREV, technology, where an internal combustion engine acts as an on-board generator to recharge the battery when the car is in use.
CEO Jim Farley told reporters on the sidelines of the auto show that there are no plans yet to bring the EREV Bronco to the US, but added, “you should expect a lot of exciting powertrains for Bronco.”
“We’re really accelerating our investment in EREVs and hybrids,” Farley said. “We’ve been really successful with the F-150 hybrid. Now we want to go across the range with hybrids and EREVs.”
News of Ford’s talks with BYD, first reported by the Wall Street Journal, sent ADRs of the Chinese automaker up 3.6% Thursday. Ford shares fell less than 1% to close at US$13.81.
The potential deal drew immediate political blowback, with House China Panel Chair John Moolenaar saying Ford “should work with our allies, not our adversaries.”
“If reports that Ford is in discussions to potentially partner with a second Chinese battery company were to come true, it would diminish Ford’s status as an iconic American company,” Moolenaar said in an emailed statement.
Ford also has a battery deal with China’s Contemporary Amperex Technology Co Ltd.