Considering Importing BYD Batteries for Ford Plants Outside the U.S.
Peter Navarro Criticizes Ford on X
The Wall Street Journal (WSJ) reported on January 15 (local time) that Ford Motor Company in the United States is in discussions to use batteries from China's BYD in some of its hybrid vehicle models.
According to sources, the two companies are discussing specific ways to collaborate, and one option being considered is importing BYD batteries to Ford’s factories outside the United States. BYD currently manufactures some commercial vehicle batteries at its bus plant in California, but does not produce passenger car batteries in the United States.
If the partnership is finalized, Ford would be joining forces with BYD, the largest Chinese electric vehicle company and a major competitor to the U.S. auto industry. In addition to electric vehicles, BYD has long been a producer of batteries for electric vehicles.
Ford’s motivation for collaborating with BYD stems from a complete overhaul of its strategy, as it delays its transition to electric vehicles and shifts its focus to hybrid and internal combustion engine vehicles, thereby requiring high-quality automotive batteries. In December of last year, Ford canceled its long-term supply agreement for electric vehicle battery cells and modules with LG Energy Solution, as part of this revised electrification plan.
This is not the first time the two companies have worked together. Changan Ford, a joint venture between Ford and a Chinese company, began using BYD batteries in 2020.
Separately, Ford is currently investing $3 billion to construct a battery cell manufacturing plant for electric vehicles at its Marshall facility in Michigan. The company plans to produce batteries for electric pickup trucks priced at around $30,000, using lithium iron phosphate (LFP) technology licensed from Chinese battery manufacturer CATL, starting this year.
Following the WSJ report, Peter Navarro, the White House trade and manufacturing adviser known as former President Donald Trump’s “tariff architect,” strongly criticized Ford on X (formerly Twitter), saying, “Does Ford want to strengthen the supply chains of Chinese competitors while also making itself more vulnerable to exploitation by those supply chains?”
Earlier, on January 13, former President Trump visited Ford’s plant in Detroit and justified his tariff policy by stating, “Thanks to tariffs, we are building more factories in the United States. In Europe, China is dominating the auto industry. What about here? We are imposing a 100% tariff on all cars coming in from China. That enables the U.S. auto industry to compete very well.”
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