BYD will supply batteries for a Ford Motor hybrid vehicle, as the Chinese automaker bets on batteries as a new revenue source, according to government documents. The move comes amid a contraction in China’s new energy vehicle market, reported Caixin.
The batteries will be used in one of Ford’s plug-in hybrid models, for which Ford’s China venture with Changan Automobile is seeking a Chinese production license, according to the document released on the Ministry of Industry and Information Technology’s website.
This marks BYD’s first agreement to supply batteries to a major global carmaker, Reuters reported. Apart from batteries, Warren Buffett-backed BYD will also provide other electric vehicle components like power management devices to Ford.