BYD will supply batteries for a Ford Motor hybrid vehicle, as the Chinese automaker bets on batteries as a new revenue source, according to government documents. The move comes amid a contraction in China’s new energy vehicle market.

The batteries will be used in one of Ford’s plug-in hybrid models, for which Ford’s China venture with Changan Automobile is seeking a Chinese production license, according to the document released on the Ministry of Industry and Information Technology’s website.

This marks BYD’s first agreement to supply batteries to a major global carmaker, Reuters reported.

Apart from batteries, Warren Buffett-backed BYD will also provide other electric vehicle components like power management devices to Ford, according to the same Reuters report.

In March, Shenzhen-based BYD announced the launch of its newly designed “Blade Battery,” which it claims has both safety and energy density advantages.

In 2018, BYD Chairman Wang Chuanfu said in an interview with Bloomberg that the company planned to list its battery business by 2022 to raise funds to take advantage of the fact that some governments around the world have announced plans to phase out gasoline-powered cars.

Contact reporter Ding Yi (yiding@caixin.com)

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