Ford $F ( ▼ 0.22% ) is reportedly in talks to buy hybrid vehicle batteries from China’s BYD $BYDDY ( ▲ 3.55% ) , according to The Wall Street Journal.
If this deal happens, it likely wouldn’t mean BYD batteries flooding into the US directly. One idea being discussed is Ford importing BYD batteries into Ford factories outside the US, which would help Ford ramp hybrids without running into the full force of tariffs and restrictions.
This is less about China “winning.”
It’s about Ford doing what it has to do.
Why this matters (the real signal)
The EV hype cycle is over.
Not “EVs are dead,” but the era where every automaker pretended the future was pure EV-only is clearly fading. Ford is doubling down on hybrids because:
EVs are still expensive
demand has cooled
tax credits are fading
and consumers want flexibility
Hybrids are the new sweet spot: better mileage, easier adoption, no charging anxiety.
And if Ford wants hybrids to scale fast, it needs one thing more than anything:
a battery supply chain that works.
BYD happens to be arguably the best battery production machine on Earth.
What Ford gets out of this
This solves a real problem for Ford.
The company wants roughly half of its global sales volume by 2030 to be hybrids, extended-range plug-in hybrids, and EVs. That requires battery supply at scale.
A BYD deal gives Ford:
high-quality hybrid batteries
scale without years of ramp time
a supplier that already dominates cost efficiency
It’s basically Ford saying: we’ll fight BYD in vehicles, but we’ll borrow their battery edge if we need to.
The political layer here matters too
This news drops right after Trump signaled he’d be open to Chinese automakers building plants in the US.
He literally said:
“Let China come in, let Japan come in.”
That alone doesn’t change policy, but it changes the temperature around it. Ford making moves like this suggests Detroit is reading the room and preparing for a more complicated US-China auto future.
BYD isn’t just a car company
This is the part most investors miss.
BYD started as a battery company before it became a global auto monster. It already ships insane battery volume, with estimates pointing to 47% battery shipment growth last year.
So Ford buying batteries from BYD isn’t some weird partnership.
It’s like Intel buying chips from TSMC.
Sometimes your competitor is also the best supplier.
Bottom line
This isn’t a random sourcing rumor.
It’s Ford admitting what the market has already figured out:
Hybrids are the realistic bridge tech of the decade, and battery supply is the bottleneck.
If Ford can lock in BYD batteries, it accelerates the hybrid pivot fast and buys Ford time while the EV market matures.