Ford Motor Co. is engaged in preliminary discussions with China's BYD Co. Ltd., the world's leading electric vehicle seller, to potentially source batteries for its hybrid vehicles from the American automaker's international factories. According to sources familiar with the matter, the batteries would power Ford's expanding hybrid lineup, with vehicles built overseas destined for export markets globally, including the United States.
Strategic Supply Chain Expansion
The talks, which were first reported by the Wall Street Journal on January 16, 2026, involve BYD as one of several battery suppliers Ford is evaluating. No agreement is considered imminent, and the discussions are focused on supplying Ford's factories located outside of North America. A Ford spokesperson declined to comment on what they termed "rumours or speculation," while BYD did not immediately respond to requests for comment.
This potential partnership builds on an existing relationship; Ford has sourced batteries from BYD since 2020 for its Chinese joint-venture factories with state-owned Changan Automobile Co. Ford also maintains a battery supply agreement with another Chinese giant, Contemporary Amperex Technology Co. Ltd. (CATL).
Political and Market Repercussions
The news of the negotiations drew swift political criticism in the United States. White House trade adviser Peter Navarro publicly questioned the potential deal. House China Panel chair John Moolenaar issued a statement saying Ford "should work with our allies, not our adversaries." He added that such a partnership "would diminish Ford's status as an iconic American company."
The market reaction was mixed. American depositary receipts for BYD rose 3.6 per cent following the report, while Ford's share price dipped slightly, closing at US$13.81.
Ford's Hybrid Push in a Shifting Market
This move aligns with Ford's strategic acceleration into hybrid and extended-range electric vehicle (EREV) technology, as global demand for pure electric vehicles has shown signs of slowing while hybrid sales grow. At the Detroit Auto Show earlier in the week, Ford CEO Jim Farley emphasized the company's commitment, stating, "We're really accelerating our investment in EREVs and hybrids."
Farley revealed plans to introduce a plug-in hybrid version of the Bronco SUV in China, utilizing EREV technology where a gasoline engine acts as an on-board generator. While there are no immediate plans to bring that specific model to the U.S., Farley hinted at "a lot of exciting powertrains for Bronco" in the future.
It is important to note that the majority of hybrids Ford sells in the U.S. market will continue to be manufactured at its North American plants. The potential BYD supply would specifically support production for Ford's international manufacturing footprint.
BYD solidified its position as the global EV sales leader in 2025, overtaking Tesla Inc. Although effectively blocked from the U.S. market by high tariffs, the Chinese automaker is expanding aggressively in Europe, Southeast Asia, and South America with its competitively priced, technology-focused vehicles.
