People familiar with the matter report that Ford Motor Company is negotiating a multi-year agreement to purchase battery cells and modules from BYD for integration into its hybrid vehicle line. The proposed deal would primarily serve Ford’s production facilities outside the United States, including plants in Europe and China. If finalized, the agreement could supply Ford with up to 50 gigawatt-hours of battery capacity annually starting in 2027, bolstering output of its popular Escape and Kuga hybrid models and addressing softer demand for fully electric vehicles.

In December, Ford announced it will convert its recently completed Kentucky battery plant—built in partnership with SK On—into a dedicated energy storage manufacturing facility. The automaker has already earmarked $2 billion on top of the $6 billion invested in its Kentucky and Marshall, Michigan factories to expand production of cells for residential and utility-scale storage. Ford expects the energy storage division to generate low-single-digit billions in annual revenue by 2028, leveraging the same battery chemistry used in its electric trucks and taking aim at a market Tesla estimates could exceed $20 billion in the U.S. by 2030.

Ford confirmed the addition of the Bronco RTR to its rugged SUV lineup, slotting the new model between the $51,475 Heritage Edition and the roughly $80,000 Bronco Raptor. Scheduled for first deliveries in summer 2026, the RTR features upgraded suspension components, 35-inch all-terrain tires and a tuned version of Ford’s 2.7-liter EcoBoost V6. Ford projects annual Bronco family sales will grow by 15%—to over 200,000 units—once the RTR enters production, capturing buyers seeking off-road capability at a lower entry point than the Raptor.

CEO Jim Farley has emphasized the critical importance of the North American free trade pact for Ford’s supply chain, particularly in engine, transmission and battery assembly. The administration’s tariff framework and trade deal discussions have coincided with Ford restarting 24-hour operations at its Michigan Assembly Plant and committing more than $5 billion in new investments across Dearborn and Chicago-area facilities since early 2023. Farley noted these actions will support an estimated 7,000 additional jobs in the region and drive operating margin expansion through higher local content ratios.