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BYD Shares Rise in Hong Kong on Reports of Battery Supply Talks With Ford

BYD Shares Rise in Hong Kong on Reports of Battery Supply Talks With Ford.

BYD shares climbed in Hong Kong trading on Friday after media reports revealed that the Chinese electric vehicle giant is in discussions with Ford Motor Company to supply batteries for the U.S. automaker’s hybrid vehicle lineup. The news boosted investor sentiment around BYD, highlighting its growing influence in the global battery and electric vehicle supply chain.

BYD Co (HK:1211) surged as much as 2.5% to HK$101.60 during the session, significantly outperforming the broader market as the Hang Seng Index slipped by around 0.2%. The stock movement reflects optimism that a potential partnership with Ford could unlock new revenue opportunities for BYD at a time when competition in China’s EV market is intensifying.

According to reports published on Thursday, Ford is exploring the possibility of sourcing batteries from BYD for its hybrid models. While discussions are still ongoing and no final agreement has been announced, one scenario under consideration involves Ford using BYD’s batteries in markets outside the United States. This approach would allow Ford to navigate Washington’s steep tariffs on Chinese auto parts and goods, which have made direct imports into the U.S. more costly.

BYD is currently China’s largest electric vehicle manufacturer by sales and is widely recognized as a global leader in battery technology. Beyond vehicle production, the company has built a strong reputation as a battery supplier, making it an attractive partner for international automakers seeking cost-effective and advanced energy solutions. A deal with Ford could help BYD diversify its revenue streams, especially as domestic EV demand in China shows signs of cooling.

For Ford, collaborating with BYD could provide access to more affordable batteries and cutting-edge EV and hybrid technology. The U.S. automaker has recently scaled back several electric vehicle projects and signaled a strategic shift toward hybrid vehicles, citing softer-than-expected EV demand in its core American market. A potential battery supply agreement with BYD would align with Ford’s pivot strategy while strengthening its competitiveness in global markets.

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