To supply its hybrid vehicle production and replace terminated agreements with LG Energy Solutions and SK On, Ford (F) is turning to China’s number one automaker for batteries, according to sources cited by The Wall Street Journal.
The two companies are reportedly in discussions in which Ford (F) would buy batteries manufactured by BYD (BYDDY) (BYDDF) for its hybrid vehicles. Under one discussed scenario, Ford (F) would import BYD (BYDDY) (BYDDF) batteries to Ford’s (F) overseas factories.
Prior to making cars, BYD (BYDDY) (BYDDF) manufactured batteries for electric vehicles, producing most at facilities within China but recently expanding overseas.
As the company pivots from fully electric vehicles to hybrids and gas-powered cars, the need for hybrid-specific batteries has grown, leading the company to build its own battery-producing plant in Michigan using technology developed by China’s CATL.
