Ford, Chinese BYD in talks for hybrid EV batteries: Report
US automaker Ford is reportedly negotiating with Chinese EV giant BYD to supply batteries for some of its hybrid models, potentially sourcing from BYD plants outside the US, though a deal is not yet finalized. The move has drawn criticism from some US industry voices over reliance on a major Chinese manufacturer.
- Tech
- Anadolu Agency
- Published Date: 10:39 | 16 January 2026
A US auto giant is in discussions with the Chinese electric vehicle (EV) giant BYD to acquire batteries for some of its hybrid-vehicle models, the Wall Street Journal reported late Thursday, citing people familiar with the matter.
The terms of the agreement are still being discussed by the two businesses. The sources said some sources suggested Ford would import batteries from BYD to its plants located outside the US.
According to the sources, negotiations are still ongoing and it is possible that a deal may not be reached.
If a deal is finalized, it would unite Ford with the biggest Chinese automaker, which has alarmed a huge portion of the American auto industry due to its capacity to manufacture reasonably priced vehicles with advanced technology.
For Ford, it would resolve an issue, since the corporation needs a battery source as it retreats from electric vehicles and expands its range of hybrid vehicles, and BYD can manufacture premium automobile batteries.
Prior to becoming one of the world's largest automakers, BYD had a strong battery manufacturing company that made batteries for hybrid vehicles. The majority of batteries are now produced in China, but as it grows in regions including Southeast Asia, Europe, and Brazil, the company is increasing capacity in its plants abroad.
In response to declining demand, Ford announced last month that it would stop producing EVs and accept an estimated $19.5 billion in charges mainly related to its EV business. The business stated that by 2030, hybrid, extended-range plug-in hybrid, and all-electric vehicles will account for about half of its worldwide sales volume.
Ford intends to increase the number of gas-powered cars in its inventory and also boost the number of hybrid vehicle alternatives. Ford needs more batteries suitable for hybrid cars in order to achieve that.
At its bus manufacturing facility in California, BYD has produced some batteries for commercial vehicles, but it has not produced any batteries for passenger cars in the US.
After the news, US President Donald Trump's trade adviser Peter Navarro criticized the plan on US social media company X.
"So Ford wants to simultaneously prop up a Chinese competitor's supply chain and make it more vulnerable to that same supply chain extortion?" he wrote. "What could go wrong here?"