Ford buying batteries from BYD? The American automaker is reportedly in talks to purchase batteries for its hybrid vehicles. What the Ford and BYD battery deal would involve According to a new report from The Wall Street Journal, Ford is in talks with BYD to buy batteries for some of its hybrid models. Sources familiar with the matter said discussions are still ongoing on exactly what the battery deal would entail, but a few suggested Ford would use them for hybrid vehicles sold outside the US. Under the arrangement, Ford would import BYD batteries to facilities outside of the US, potentially in Germany, Spain, Thailand, Turkey, or other major overseas plants. However, there is still a chance the deal will not fall through, according to the sources. Advertisement - scroll for more content A Ford spokesperson said, “We talk to lots of companies about many things,” but didn’t offer any additional details. BYD declined to comment. The report comes after Ford announced last month that it would discontinue the all-electric F-150 Lightning as part of its broader shift in its Ford+ plan. Ford Ranger PHEV (Source: Ford) Rather than large EVs, Ford is doubling down on smaller, more affordable models with its low-cost Universal EV platform. In the meantime, the company will bridge the gap with new hybrids and extended-range electric vehicles (EREVs). Ford will replace the electric pickup with an EREV version that uses both battery power and a gas engine that acts as a generator to keep the battery charged. CEO Jim Farley presents the Ford Universal EV Platform in Kentucky (Source: Ford) The company said it would take a $19.5 billion hit due to the restructuring, roughly half of which is due to cancelling the Lightning. Ford is nearly finished with construction of its BlueOval Battery Park in Michigan, where it will license technology from China’s CATL for upcoming vehicles based on the UEV platform. The battery plant is expected to begin production this year. BYD Shark PHEV pickup (Source: BYD) The first vehicle based on the UEV platform will be a mid-size electric pickup, which Ford said will start at around $30,000. At the Detroit Auto Show, which opened to the public on Thursday, Ford’s CEO, Jim Farley, said he wants to expand the company’s hybrid and EREV lineup following the success of the F-150 hybrid. Electrek’s Take It’s not a total shock to see Ford turning to China’s battery leaders. It’s already licensing CATL’s tech for use at its Michigan battery plant, so a deal with BYD is possible. For Ford, it would help secure a stable supply of batteries (outside the US) as it plans to introduce new hybrid and EREVs over the next few years. Ford and BYD are no strangers either. In 2020, Ford’s joint venture in China, Changan Ford, began using BYD batteries in vehicles sold there. BYD has since reportedly reached out to Ford about supplying batteries for other markets. While the US is pulling back, China is plowing ahead with new EV tech, including next-gen batteries, advanced driver assistance systems (ADAS), and other related technologies. China is already dominating the global EV battery market. According to SNE Research, CATL and BYD alone accounted for over 50% of global sales last year. Stay up to date with the latest content by subscribing to Electrek on Google News. You’re reading Electrek— experts who break news about Tesla, electric vehicles, and green energy, day after day. Be sure to check out our homepage for all the latest news, and follow Electrek on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our YouTube channel for the latest reviews.
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