Ford is holding talks with BYD over a potential agreement to source batteries for its hybrid vehicles, the Wall Street Journal reported on Thursday. The discussions come as the Detroit-based automaker grapples with slowing demand for fully electric vehicles.
According to the report, which cited people familiar with the matter, the two companies are still working through the structure and details of any possible arrangement.
“We talk to lots of companies about many things,” Ford said in a statement. BYD did not immediately respond to a request for comment from Reuters.
If finalized, the deal could provide Ford with access to lower-cost batteries and more advanced technology from one of China’s largest electric vehicle manufacturers, potentially improving the competitiveness of its hybrid lineup.
The talks come as North American automakers reassess their aggressive and costly push into electric vehicles. Many have struggled to compete with Chinese rivals, missed out on key tax incentives, and are now shifting focus toward more affordable models and hybrids.
In December, Ford said it would take a $19.5 billion writedown and abandon several planned EV models, underscoring the challenges facing traditional carmakers as the global auto market pivots toward a more measured transition to electrification.
