According to a new report from The Wall Street Journal, Ford is in discussions with BYD about purchasing batteries for some of its hybrid vehicles, marking another potential shift in Ford’s evolving electrification strategy.
Sources familiar with the matter say the talks are still at an early stage, and details of any potential agreement remain fluid. Several sources suggested that batteries supplied by BYD would likely be used in hybrid vehicles sold outside the United States, rather than in Ford’s domestic lineup.
Under the reported framework, Ford would import BYD batteries to its manufacturing facilities outside the U.S., with locations such as Germany, Spain, Thailand, Turkey, or other overseas plants under consideration. However, the sources cautioned that there is still a possibility the discussions may not result in a finalized deal.
A Ford spokesperson responded cautiously, stating, “We talk to lots of companies about many things,” while declining to provide further details. BYD also declined to comment.
A strategic shift away from large EVs
The report follows Ford’s announcement last month that it would discontinue the all-electric F-150 Lightning, a decision that underscores the company’s broader reassessment of its EV ambitions. As part of its updated Ford+ strategy, the automaker is moving away from large, high-cost EVs and refocusing on smaller, more affordable vehicles built on its upcoming Universal EV (UEV) platform.
In the near term, Ford plans to bridge the transition with an expanded lineup of hybrids and extended-range electric vehicles (EREVs). The company has confirmed that the electric pickup will be replaced by an EREV version, combining battery power with a gasoline engine that functions solely as a generator to recharge the battery.
Ford has acknowledged that the restructuring will come at a steep cost. The company expects a $19.5 billion financial hit, roughly half of which is tied to the cancellation of the F-150 Lightning program.
Batteries at the center of Ford’s recalibration
Ford’s interest in BYD batteries highlights a pragmatic reality facing legacy automakers: battery sourcing remains one of the most complex and expensive elements of electrification. BYD, widely regarded as one of the world’s most efficient battery producers, could offer cost and scale advantages—particularly for hybrids, which require smaller battery packs than full EVs.
At the same time, Ford is nearing completion of its BlueOval Battery Park in Michigan, where it will license battery technology from China’s CATL. The plant is expected to begin production this year and will supply batteries for vehicles based on the UEV platform.
Ford has already announced that the first UEV-based vehicle will be a mid-size electric pickup, with a starting price of around $30,000, signaling a renewed emphasis on affordability and volume rather than headline-grabbing range or performance.
Hybrids and EREVs take center stage
Speaking at the Detroit Auto Show, Ford CEO Jim Farley said the company plans to significantly expand its hybrid and EREV lineup, building on the strong market reception of the F-150 hybrid.
The strategy reflects a growing industry consensus that hybrids and EREVs may serve as a more realistic bridge for many consumers, especially as EV demand growth moderates and infrastructure challenges persist in key markets.
Final outlook: pragmatism over ideology
Ford’s reported talks with BYD are less about allegiance to a specific battery supplier and more about flexibility and cost control in a rapidly changing market. By leaning into hybrids, EREVs, and global battery partnerships, Ford appears to be prioritizing what customers will buy today, rather than betting everything on a fully electric future that may take longer to materialize.
Whether the BYD talks result in a deal or not, the message is clear: Ford is shifting from an all-in EV narrative toward a more pragmatic, step-by-step electrification path—one that could ultimately prove more resilient as consumer demand, regulations, and technology continue to evolve.
