Ford is looking to enhance its hybrid lineup both in the U.S. and overseas, especially with the cooling sales of electric vehicles. To achieve this goal, the automaker is reportedly in discussions with BYD, the world’s largest automaker, to potentially purchase lithium-ion battery packs for its upcoming hybrid models.
BYD, known not only for its car manufacturing prowess but also as one of the largest battery makers globally, already supplies its low-cost lithium-iron phosphate batteries to other major automakers like Tesla, Stellantis, Mercedes-Benz, and Toyota for their electric vehicles in Europe and China. The company’s battery deployments grew significantly last year, making it a key player in the industry.
While the specifics of the Ford-BYD deal remain unclear, one potential outcome could see Ford importing BYD batteries for its electric vehicles manufactured overseas, given the high tariffs that currently restrict China-made EVs and batteries from entering the U.S. market.
Ford’s plans for expanding its hybrid lineup include the production of a plug-in hybrid version of the Bronco in Spain in 2027. However, it is uncertain whether this model would incorporate BYD batteries. In the U.S., Ford halted production of the all-electric F-150 Lightning last year and put on hold its plans for an electric successor, resulting in significant charges to unwind its EV initiatives.
Instead, Ford’s future strategy involves introducing an extended-range version of the F-150 Lightning as well as continuing the success of its Maverick and F-150 Hybrid models, which experienced record sales in 2025. With the potential collaboration with BYD for battery supply, Ford aims to strengthen its position in the hybrid market and adapt to changing consumer preferences in the automotive industry. This potential partnership with BYD could bring significant benefits to Ford, especially in the electric vehicle market. BYD is a major player in the EV industry, known for its expertise in battery technology and electric vehicle manufacturing. Teaming up with BYD could provide Ford with access to cutting-edge technology and help accelerate the development of its electric vehicles.
One of the key advantages of this partnership is the access to BYD’s low-cost LFP batteries. These batteries are not only more affordable but also safer and have a longer lifespan compared to traditional lithium-ion batteries. By leveraging BYD’s battery technology, Ford can potentially lower the cost of its electric vehicles and make them more accessible to a wider range of consumers.
Furthermore, the collaboration with BYD could also open up new opportunities for Ford in the Chinese market. China is the world’s largest electric vehicle market, and partnering with a Chinese titan like BYD could give Ford a competitive edge in this lucrative market. With BYD’s established presence and reputation in China, Ford could benefit from increased brand visibility and market share in the region.
Overall, if the BYD deal goes through, it could be a game-changer for Ford’s electric vehicle strategy. The partnership with BYD would not only strengthen Ford’s position in the EV market but also pave the way for future growth and innovation in electric mobility. It remains to be seen whether the deal will come to fruition, but if it does, it could mark the beginning of a successful collaboration between two automotive giants.