Ford Considering Purchasing Batteries from BYD, South Korean Media Reports
On February 12, South Korean media Asia Economic published an article stating that the American car manufacturer Ford Motor Company is discussing using Chinese BYD's batteries in some of its hybrid models.
According to sources, the two companies are exploring specific cooperation plans, including importing BYD batteries to Ford's factories outside the United States. BYD produces some commercial vehicle batteries at its bus factory in California, but does not produce passenger car batteries in the United States.
If the two companies reach a cooperation agreement, Ford will join forces with China's largest electric vehicle company, BYD. BYD has long been producing electric vehicle batteries, not just electric vehicles.
The collaboration between Ford and BYD stems from its comprehensive strategic transformation, shifting from electric vehicles to hybrid and internal combustion engine vehicles, which requires high-quality automotive batteries. In December last year, Ford terminated its long-term supply contract with LG Energy Solution for electric vehicle battery cells and modules, which was also a response to this shift in its electrification strategy.
This is not the first time the two companies have cooperated. Changan Ford is an automaker jointly established by Ford and a Chinese company, which has been using BYD batteries since 2020.
In addition, Ford is currently investing $3 billion to build an electric vehicle battery production plant at its factory in Marshall, Michigan. The company has obtained authorization for lithium iron phosphate (LFP) technology from Chinese battery company CATL, and plans to start producing batteries for a $30,000 electric pickup truck this year.
After the report by The Wall Street Journal, Peter Navarro, White House trade advisor and known as Donald Trump's "tariff strategist," strongly criticized Ford, saying: "Is Ford trying to help its Chinese competitors develop supply chains while making these supply chains more vulnerable?"
Previously, President Trump visited Ford's factory in Detroit and defended his tariff policy, saying: "Because of tariffs, we are building more factories in the United States. In Europe, China dominates the auto industry. So what about the U.S.? We impose 100% tariffs on all cars from China. This allows the U.S. auto industry to compete very well."
Original: toutiao.com/article/1856920161092620/
Statement: The article represents the views of the author.