Ford $F ( ▼ 1.52% ) is considering a partnership with Chinese automaker BYD to provide batteries for some of its hybrid models, a move that has already drawn heavy criticism from the White House.
The details: The full scope of the potential partnership is still unclear, as the two companies are said to be working through how an arrangement would play out, reports the Wall Street Journal.
One option could involve Ford using BYD batteries for markets outside the U.S., as the company looks for ways to cut EV production costs amid slowing growth in the segment.
By 2030, Ford expects roughly 50% of its global volume to be hybrids, extended-range EVs, and fully electric vehicles to help drive the company’s profitability.
What they’re saying: "We talk to lots of companies about many things," representatives from Ford said.
Why it matters: Ford is effectively signaling that cutting battery costs is becoming just as important as controlling where those batteries come from in its long-term electrification strategy. As the automaker looks to shore up profits on hybrids and EVs, cheaper Chinese battery supply could become a key lever in its electrification and pricing strategy.
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Between the lines: News of a potential Ford–BYD partnership isn’t entirely surprising, given how openly Ford CEO Jim Farley has praised Chinese EV tech.
Following a recent trip to China, in June Farley described China’s electric vehicle industry as “superior” when it comes to “in-vehicle technology.”
The Ford CEO also praised the cost and quality of Chinese-made cars, indicating that he had been to China several times to assess their operations.
Many, including Farley, have previously warned that China’s auto industry (thanks to tech advances and lower production costs) is a major threat to American automakers.
What they’re saying: "So Ford wants to simultaneously prop up a Chinese competitor's supply chain and make it more vulnerable to that same supply chain extortion?,” wrote White House trade adviser Peter Navarro on X. “What could go wrong here?"
Bottom line: If Ford can structure a BYD deal that survives U.S. politics and regulatory rules, dealers would likely see more aggressively priced hybrids and electrified models on their lots. But they would also be pulled into a louder fight over China’s role in the U.S. auto supply chain and face fresh questions from customers about what that means for long-term support and reliability.
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