• Ford is negotiating with [[BYD (BYDDY) (1211.HK)](https://www.roic.ai/quote/1211.HK) (BYD)](https://www.roic.ai/quote/BYD) to supply batteries for its hybrid vehicles, though no agreement is finalized.
  • The discussions align with Ford's strategic pivot from pure electric vehicles to hybrids, which are experiencing rising sales.
  • BYD, a leading battery manufacturer with hybrid expertise, is expanding its overseas production capabilities.

Ford Motor Company (F) is in active discussions with Chinese battery giant BYD to secure battery supplies for its hybrid vehicle lineup, according to people familiar with the matter. The talks, which are ongoing, reflect Ford's broader shift in strategy as it moves away from an all-electric focus toward hybrids amid fluctuating market demands. No deal has been reached yet, and negotiations could still falter, sources caution.

This potential partnership builds on existing collaborations between the two companies, including Ford's Bronco Electric SUV in China that utilizes BYD's lithium-iron-phosphate Blade battery technology. BYD, known for its prowess in hybrid and plug-in hybrid systems, has been expanding its production footprint overseas, making it an attractive supplier as Ford seeks to bolster its hybrid offerings. The automaker's shift comes as hybrid sales surge globally, particularly in markets like China, where plug-in hybrids and extended-range electric vehicles are gaining traction.

Industry analysts note that Ford's move mirrors a broader trend among automakers adjusting to competitive pressures from Chinese manufacturers offering affordable hybrid options. "Without a deal, Ford might face supply chain constraints as it ramps up hybrid production," said one analyst, who requested anonymity due to the sensitivity of the talks. Efforts to restructure its battery sourcing have hit a snag in the past, but insiders suggest these discussions are more advanced, with both parties aiming to finalize terms in the coming months.

Ford has been quietly scaling back its electric vehicle ambitions in favor of hybrids, a pivot that has drawn mixed reactions from investors. The company's shares dipped slightly in early trading today, reflecting uncertainty over the negotiations. Meanwhile, BYD continues to leverage its experience in hybrid technology, including developing advanced engines for hybrid applications, positioning it as a key player in the evolving automotive landscape.

Attempts to reach Ford and BYD for comment were unsuccessful, but a spokesperson for Ford previously emphasized the company's commitment to "flexible powertrain strategies" in response to market dynamics. The outcome of these talks could influence Ford's ability to meet upcoming regulatory deadlines and production targets, especially as competition intensifies in the hybrid segment. As one industry observer put it, "This is about securing a reliable supply chain in a volatile market—every detail matters."

Correction: An earlier version of this article misstated the battery type in Ford's Bronco Electric SUV; it uses BYD's lithium-iron-phosphate Blade battery, not a nickel-based variant.