Chinese leading electric vehicle manufacturer BYD is taking significant strides to maintain its dominant position in the industry. Ford’s latest agreement grants BorgWarner, a supplier for both Ford and General Motors, the rights to utilize BYD’s Blade battery packs.
China’s BYD takes aim at Ford and General Motors with its own battery pack offerings.
BorgWarner has announced a strategic partnership with FinDreams, the battery arm of leading Chinese automaker BYD. Underneath the agreement, Beneath Auto may prove itself as the sole non-OEM authorized localizer of BYD’s Blade LFP battery packs for commercial vehicles.
As a leading manufacturer, the company will be the dominant supplier of LFP battery packs featuring FinDream’s innovative Blade battery cells across the Americas, Europe, and key markets in Asia Pacific. The agreement is valid for a period of eight consecutive years.
By securing BYD’s Blade cell technology and acquiring intellectual property (IP), design, and manufacturing rights for FinDreams batteries, BorgWarner will further solidify its position in the automotive battery industry.
BorgWarner’s CEO, Frédéric Lissalde, describes lithium-iron-phosphate (LFP) batteries as “thrilling technology,” noting their increasing importance due to decreasing costs.
“We endorse FinDreams Battery as a suitable choice for BorgWarner in this context, given their extensive experience and track record of success in developing LFP batteries for the mobility sector across China and Europe over the past two decades.”
According to data from the China Automotive Battery Trade Alliance, BYD commanded a significant 41% stake in the LFP battery market as of late November. CATL’s Chinese-language rival came in second place with a significant 33.9% market share.
The company’s innovative Blade Battery technology has successfully powered electric vehicles that are now being purchased worldwide. The BYD Seal, which made its debut in Mexico last December, boasts a remarkable range of up to 435 miles (700 km), according to reports. Starting at just under $45,000 (approximately 778,800 pesos).
According to recent data, BYD’s lithium-iron-phosphate (LFP) batteries played a crucial role in propelling the company past Tesla, enabling it to become the world’s largest electric vehicle (EV) manufacturer over the final quarter of 2023.
Meanwhile, BorgWarner, a leading supplier of automotive components to major manufacturers like Ford, General Motors, and Stellantis, has amplified its presence in the Chinese market by doubling down on its investments.
The company secures a landmark deal with BYD on the same day it finalizes a contract with a prominent Chinese original equipment manufacturer (OEM) to develop and supply twin inverters, marking a significant milestone in its growth strategy. BorgWarner recently began manufacturing eMotor rotors and stators for XPeng, with production commencing just last week. Xpeng plans to leverage components from its upcoming X9 MPV, with production slated to begin in Q3.
Electrek’s Take
While several major automakers have partnered with BYD to utilize its advanced Blade batteries in international markets, alongside prominent brands like Tesla, Kia, Hyundai, and Toyota, this significant deal underscores BYD’s pioneering position in the industry.
Ford’s top executive for its electric vehicle division, Marin Gjaja, warned at a Detroit panel discussion on Wednesday that cheaper Chinese electric vehicles pose a “colossal strategic risk” to entering the US market.
According to Gjaja, Ford needs to accelerate its electric vehicle development, cautioning that “if we don’t get our EVs happening, we don’t have a future as an organization.” He also acknowledged the company’s rivals are ahead in terms of technological expertise.
BYD Mexico’s CEO, Zhou Sou, revealed plans to construct a new manufacturing facility in the country during a recent meeting. This regional trade center will serve as a key export hub to the United States.
Gjaja revealed on Wednesday that if he were still running a Chinese-language original equipment manufacturer (OEM) in mainland China, he would likely be scouting for land in Mexico to set up operations. Located in Mexico, the country offers a unique combination of factors that provide a competitive advantage, including a relatively low cost of construction, affordable labor costs, and the United States-Mexico-Canada Agreement (USMCA) trade deal, which provides access to the US market.
As the Japanese, Koreans, and Germans have successfully established themselves in the electric vehicle market, Gjaja expects Chinese manufacturers to follow suit, offering more affordable options for consumers. It’s an enormous market.”
Meanwhile, BYD is introducing its most affordable electric vehicle in Brazil, a market close to the US. The BYD Seagull mini-electric vehicle, known as the Dolphin, is set to launch globally with a starting price of $20,100 or 99,800 renminbi.
