People familiar with the negotiations say Ford Motor Company is exploring a purchase agreement with BYD to supply hybrid‐vehicle battery modules for its assembly plants outside the United States. If completed, the deal would mark Ford’s first major procurement of BYD batteries and could cover annual volumes equivalent to powering more than 100,000 hybrid vehicles. The discussions come after Ford’s internal data showed a 12% year‐over‐year decline in electric vehicle retail deliveries in the fourth quarter of 2025, prompting executives to seek more cost‐effective technologies and diversified supply sources for its next generation of electrified models.

Ford has committed roughly $10 billion to build two battery plants in Kentucky and Michigan since 2021 and announced in December plans to invest an additional $2 billion to convert part of the Kentucky facility into energy storage production. The retooling will enable the plant to shift up to 30 GWh of annual cell capacity from EV batteries to stationary storage units for residential, commercial and utility applications. Benchmark Mineral Intelligence projects that demand for grid‐scale battery storage could triple by 2028, and Ford’s planned volume could capture as much as 15% of the U.S. industrial storage market by 2030.

Executive Chairman Bill Ford reflected on the company’s centurion‐long heritage, highlighting a global workforce of 180,000 employees and more than 60 manufacturing facilities in 20 countries as evidence of the brand’s endurance. CEO Jim Farley, speaking at the 2026 Detroit Auto Show, acknowledged missteps in product timing for early EV launches—citing a 25% cost premium over internal targets—and laid out plans to reinvest savings from the new BYD deal into next-generation electric technology. He also confirmed Ford’s return to Formula One racing in 2026 as part of a broader marketing push to enhance the company’s performance image in Europe and Asia.