Ford and BYD Hybrid Battery Collaboration: Strategic Layout and Industry Impact Analysis

Based on the latest data and in-depth analysis I have collected, the following is a strategic impact report on the hybrid power battery collaboration between Ford and BYD:

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According to a January 16, 2026 report by The Wall Street Journal, Ford Motor and BYD are in negotiations regarding hybrid vehicle battery supply[1][2]. As of now, the two parties are still in the discussion phase, and the negotiations may not result in a final agreement. One proposed plan is for Ford to import batteries from BYD and ship them to its factories outside the United States[1][2]. This marks a groundbreaking collaborative path being explored by two global automakers with distinct strategic backgrounds.

The global power battery market is highly concentrated. Data from January to November 2025 shows that Contemporary Amperex Technology Co., Limited (CATL) ranks first globally with a 38.2% market share, followed closely by BYD with 16.7%; together, the two companies account for 54.9% of the global market share[3]. This data indicates that BYD is not only one of the world’s largest new energy vehicle manufacturers, but also the second-largest power battery supplier, with the capability and technical strength to supply batteries to top global automakers.

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Ford has recently undergone a major strategic adjustment. On December 15, 2025, Ford announced that it would scale back its electric vehicle business, planning to record a charge of approximately $19.5 billion for this move[4][5]. This adjustment reflects Ford’s reassessment of market realities—the company previously overestimated the demand growth for pure electric vehicles, while underestimating the market resilience of fuel-powered and hybrid vehicles.

Ford’s new strategy is built on four pillars[6]:

• Expand fuel-powered vehicle product lines
  : Consolidate core profit sources
• Accelerate hybrid deployment
  : By 2030, the target sales share of hybrid vehicles, extended-range plug-in hybrid vehicles, and pure electric vehicles will be increased to 50% (only 17% in 2025)
• Develop low-cost electric platforms
  : Launch affordable universal electric platforms
• Optimize U.S. manufacturing assets
  : Build a battery factory in Michigan using CATL technology

Collaboration with BYD will directly address a key bottleneck in Ford’s hybrid strategy—

. While hybrid vehicles have lower requirements for battery energy density than pure electric vehicles, they have strict standards for battery safety, cycle life, and cost control. As a leading global battery manufacturer, BYD’s Blade Battery technology has significant advantages in safety and cost control.

For Ford, the value of this collaboration is reflected in the following:

Strategic Dimension	Specific Benefits
Cost Optimization	Leverage BYD’s large-scale production to reduce battery procurement costs
Technical Assurance	Access market-proven high-quality battery technology
Supply Chain Resilience	Diversify supplier risks and avoid reliance on a single source
Rapid Deployment	Shorten the battery supply preparation cycle for hybrid product lines

However, this collaboration faces multiple challenges. First is

—against the backdrop of growing U.S. vigilance toward Chinese technology companies, partnering with a Chinese battery giant may trigger scrutiny from the U.S. Congress and public questioning. Second is —Ford is already building a battery factory in Michigan in technical cooperation with CATL, and coordinating the relationship between the two partners will become a management challenge[1].

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BYD has actively advanced its globalization strategy in recent years. In 2025, BYD’s overseas sales exceeded 1 million units, representing a year-on-year growth of 145%, covering more than 110 countries and regions[3]. In the European market, BYD’s battery usage reached 11.2 GWh from January to October 2025, a year-on-year increase of 216.4%[7].

The potential collaboration with Ford will further strengthen BYD’s global layout:

• Access to U.S. automaker supply chain system
  : Lay the foundation for in-depth cooperation in the future
• Brand endorsement effect
  : Gain recognition from the second-largest U.S. automaker globally
• Capacity export opportunities
  : BYD’s factories in Thailand, Uzbekistan, Brazil, Hungary and other regions can supply Ford’s global factories[8]

BYD’s battery business (FinDreams Battery) has achieved independent external supply capabilities. From January to October 2025, FinDreams Battery held a market share of over 35% in China’s power battery installed capacity market[3], with clients including international automakers such as Mercedes-Benz, Toyota, and Hyundai, as well as new power brands like Nio and Xpeng.

Supplying Ford will mark a new development phase for BYD’s battery business:

BYD's Battery Business Strategic Evolution:
├── Phase 1: Self-supply (Meet internal demand)
├── Phase 2: Technology external supply (Open platform strategy)
└── Phase 3: Global supporting supply (Enter core supply chain of multinational automakers)

According to BYD’s 2025 interim results report, the company’s revenue from automotive and related products business reached approximately RMB 302.5 billion, representing a year-on-year growth of 32.49%[8]. Successfully entering Ford’s supply chain will bring BYD:

• Incremental revenue source
  : Potential battery demand from millions of Ford’s global hybrid models
• Amplified scale effect
  : Allocate R&D and manufacturing costs by serving more customers
• Accelerated technology iteration
  : Obtain higher-standard technical requirements from international automakers such as Ford

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The deeper significance of the collaboration between Ford and BYD lies in that it reflects the

of global traditional automakers in their electrification paths:

Path Choice	Representative Automakers	Core Characteristics
Aggressive Electrification	Volkswagen, General Motors	Full shift to pure electric, large-scale investment in battery factories
Hybrid Transition Priority	Ford, Toyota	Maintain core fuel-powered vehicle business while developing hybrid/plug-in hybrid models
Dual Path Parallel	BYD, Tesla	Dual-drive of pure electric + plug-in hybrid, flexible technical routes

Ford’s strategic adjustment indicates that the market penetration speed of pure electric vehicles may be slower than previously expected. Constrained by multiple factors such as charging infrastructure, battery costs, and consumer acceptance, the lifecycle of hybrid vehicles as a “transition solution” may be extended.

Despite tense Sino-U.S. trade relations, the trend of deep integration in the automotive industry continues. The negotiations between Ford and BYD continue the following trends:

1. Depoliticization of technical cooperation
   : As an underlying technology, the commercial value of battery technology transcends political boundaries
2. Regional restructuring of supply chains
   : Under geopolitical pressure, automakers are seeking a new model of “Chinese technology + global production”
3. Core demand for cost competitiveness
   : Facing global competition from Chinese new energy vehicles, European and American automakers must control electrification costs

If Ford and BYD reach a collaboration, it will trigger a chain reaction in the global power battery market:

Current Landscape: Duopoly dominated by CATL(38.2%) + BYD(16.7%)
                          │
                          ▼
Potential Change 1: More European and American automakers choose BYD as a secondary supplier, breaking CATL's absolute advantage
Potential Change 2: Japanese and Korean battery enterprises face greater competitive pressure, with their market shares further compressed
Potential Change 3: Discourse power on battery technology standards tilts toward China

Notably, Ford has already established a technical cooperation relationship with CATL in Michigan[1]; if it also reaches a collaboration with BYD, Ford will become the U.S. automaker that partners with both of China’s two major battery giants. This “double insurance” strategy may become a reference model for other European and American automakers.

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From the perspective of capital market performance, Ford’s stock price has risen 39.30% over the past year[9], indicating certain positive market feedback on its strategic adjustment. However, the analyst consensus rating is “Hold”, with a target price of $12.25 representing an 11.6% discount to the current stock price[9], reflecting investors’ cautious attitude toward Ford’s electrification transformation execution capability.

• Expansion of hybrid product lines may boost overall sales and profit margins
• Battery cost optimization improves the profitability of the Model e business unit
• Collaboration with BYD reduces supply chain risks

• Impact of the $19.5 billion charge on short-term performance
• Policy uncertainties brought by changes in Sino-U.S. relations
• Intensified competition in the hybrid market (Toyota, General Motors and others are also focusing on hybrid models)

BYD has performed steadily in the Hong Kong stock market; in 2025, its annual new energy vehicle sales reached 4.6 million units, including 2.25 million pure electric vehicles, surpassing Tesla for the first time to become the global new energy vehicle sales champion[3]. The potential collaboration with Ford will further verify the global competitiveness of its battery technology.

• The battery business has independent value, with expectations of FinDreams Battery spin-off and listing
• Rapid growth in overseas markets, diversifying competition pressure in the Chinese market
• Dual-drive of “pure electric + plug-in hybrid”, strong risk resistance of product structure

• Slowdown in growth in the Chinese market (sales have declined year-on-year for four consecutive months)
• U.S. market access barriers (policy restrictions)
• Pullback risk brought by overvaluation

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The hybrid power battery collaboration negotiations between Ford and BYD reflect that the global automotive industry is in a period of profound transformation:

1. Strategic Level
   : Ford’s shift from aggressive electrification to a “hybrid-first” approach reflects the gap between market realities and expectations
2. Technical Level
   : BYD’s battery technology has been recognized by international automakers, and the competitive advantages of China’s new energy vehicle industry chain are spilling over
3. Landscape Level
   : Integration and competition in the global automotive industry chain proceed in parallel, and a new model of both competition and cooperation between Chinese and U.S. enterprises is taking shape

Looking ahead, if this collaboration is finalized, it will have the following far-reaching impacts:

• Short-term (1-2 years)
  : The two parties complete supply agreement negotiations, and battery supply gradually ramps up
• Mid-term (3-5 years)
  : The collaboration model may expand to more vehicle models and technical fields
• Long-term (5-10 years)
  : The global automotive industry forms a new competitive pattern of “Chinese technology + European and American brands”

However, considering the complexity of current Sino-U.S. relations, the uncertainty of geopolitical risks, and the fact that negotiations are still ongoing, there are still significant variables regarding the possibility of the two parties finalizing the collaboration. Investors should closely follow the progress of subsequent negotiations and relevant policy developments.

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[1] Sina Finance - Ford Motor and BYD Negotiate Hybrid Vehicle Battery Collaboration Amid Sluggish Electric Vehicle Market (https://finance.sina.com.cn/stock/usstock/c/2026-01-16/doc-inhhmhtf7371187.shtml)

[2] Futu News - Ford and BYD Are in Talks Regarding Hybrid Vehicle Batteries (https://news.futunn.com/flash/19834854/ford-and-byd-are-in-talks-regarding-hybrid-vehicle-batteries)

[3] Dian Shang Pai - BYD Takes Global First Place, Wang Chuanfu Goes All Out (https://www.pai.com.cn/p/01kev4w07jb4hvfseqx3r8fqge)

[4] The New York Times - Ford Will Take $19.5 Billion Hit as It Rolls Back E.V. Plans (https://www.nytimes.com/2025/12/15/business/ford-electric-vehicles-hybrids.html)

[5] Frost & Sullivan - Ford’s EV Reset and What It Signals for the US Automotive System (https://www.frost.com/growth-opportunity-news/mobility-automotive-transportation/powertrain-electric-vehicles/fords-ev-reset-and-what-it-signals-for-the-us-automotive-system/)

[6] Ford From the Road - Reinvests in Trucks, Hybrids, Affordable EVs, Battery Storage (https://www.fromtheroad.ford.com/us/en/articles/2025/ford-reinvests-trucks-hybrids-affordable-electric-vehicles)

[7] Battery Tech Online - Top 5 Insights into the 2025 EV Battery Market (https://www.batterytechonline.com/ev-batteries/top-5-insights-into-the-2025-ev-battery-market)

[8] BYD Company Limited - 2025 Interim Report (https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0829/2025082902217_c.pdf)

[9] Jinling AI - Company Profile Data (F and BYD Company Overview API)

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Figure 1: 2025 Global Power Battery Market Share (Left) and Ford Powertrain Strategic Transformation Targets (Right)

Figure 2: Business Scale Comparison between BYD and Ford, and Global Power Battery Demand Growth Trend