DETROIT, Jan 16, 2026, 07:07 (EST)
- Ford is in talks with China’s BYD about batteries for hybrid vehicles, a report said
- U.S. officials have criticised the idea, warning about reliance on Chinese supply chains
- CEO Jim Farley is pushing hybrids and “extended-range” models as EV demand cools
Ford Motor is in talks with China’s BYD about buying batteries for its hybrid vehicles, the Wall Street Journal reported on Thursday. One option under discussion would have Ford use BYD batteries for vehicles sold outside the United States. White House trade adviser Peter Navarro attacked the idea on X, writing: “What could go wrong here?” 1
The talks matter because Ford is leaning harder into hybrids as demand for fully electric vehicles softens and costs stay high. Batteries remain one of the biggest expenses in any electrified car, and cheaper supply can swing pricing fast.
The possible tie-up also tests how far U.S. companies can go in relying on China-linked technology while Washington pushes to cut exposure to Chinese supply chains. Ford has already faced scrutiny over battery partnerships, and the politics around anything “China” has only tightened.
People familiar with the negotiations told The Business Times that Ford is sounding out several suppliers, including BYD, to support hybrids built at its overseas plants and shipped worldwide, including to the United States. A Ford spokesperson said the company “talks to lots of companies about many things” and does not comment on “rumours or speculation.” House China panel chair John Moolenaar said Ford “should work with our allies, not our adversaries.” 2
The same report said no deal was imminent. It also said Ford has sourced batteries from BYD since 2020 for its joint-venture factories in China with state-owned Changan Automobile.
Ford used the Detroit Auto Show this week to underline its hybrid push, including plans for a plug-in hybrid Bronco in China using extended-range electric vehicle, or EREV, technology. EREV is a setup where a gasoline engine acts as an onboard generator to recharge the battery while the vehicle is in use.
CEO Jim Farley told reporters there were no plans yet to bring that EREV Bronco to the United States. He added: “You should expect a lot of exciting powertrains for Bronco.”
The battery talks land as Ford tries to contain losses tied to its EV build-out. In December, Ford said it would take a $19.5 billion writedown — an accounting charge that reduces the stated value of assets — and scrap several EV models.
BYD, a major Chinese automaker and battery maker, did not respond to a Reuters request for comment on the talks. Any arrangement would put Ford in business with a company that also competes in electric cars, even if the batteries are used outside the U.S.
Ford also has a battery deal with China’s Contemporary Amperex Technology Co Ltd, according to The Business Times. BYD’s U.S.-traded shares rose 3.6% on Thursday after news of the talks, while Ford ended down less than 1%, the report said.
Ford is not the only name drawing attention from China’s auto orbit. Geely, owner of Volvo and Polestar, could announce a U.S. entry within 24 to 36 months, its global PR lead Ash Sutcliffe said, according to InsideEVs. AutoPacific president Ed Kim told the site that social media has helped shape U.S. views of Chinese vehicles as “high-end luxury vehicles.” 3
Still, the Ford-BYD talks carry a big “if.” They could end without a deal, and any agreement may face new political pressure, tighter trade rules or fresh restrictions aimed at keeping Chinese-linked tech out of U.S. supply chains.
