Shares of BYD moved higher in Hong Kong trading on Friday after reports indicated the company is in discussions with Ford Motor Company over a potential battery supply agreement for Ford’s hybrid vehicles.
BYD Co (HK:1211) climbed as much as 2.5% to HK$101.60, outperforming the broader Hang Seng, which slipped around 0.2% during the session.
According to reports published on Thursday, Ford is exploring the possibility of sourcing batteries from BYD for its hybrid lineup, although negotiations are still ongoing and final terms have yet to be agreed.
One scenario under consideration would see Ford using BYD-made batteries in markets outside the United States, a move that could help the automaker navigate high U.S. tariffs on auto parts and imports from China.
BYD is China’s largest electric vehicle manufacturer by sales and a key player in battery development. A partnership with Ford could open up an additional revenue stream for the company, particularly as competition intensifies and sales momentum cools in mainland China.
For Ford, a deal with BYD would provide access to more cost-effective batteries and advanced electrification technology. The U.S. automaker has recently shelved several fully electric models and signaled a strategic shift toward hybrid vehicles, citing softer demand for EVs in its core American market.
