Chinese electric vehicle giant BYD recently secured a license deal with US-based tier 1 automotive supplier BorgWarner in early February 2024. The partnership will essentially give the American supplier rights to its popular Blade battery technology.
License deal
As per the press release, the newly signed strategic agreement will make BorgWarner the “only non-OEM localized manufacturer with rights to localize BYD’s Blade LFP battery packs for commercial vehicles” for eight years.
Therefore, the auto supply giant will be the sole LFP battery pack maker using FinDream’s Blade battery cells in various markets, including America, Europe, and Asia Pacific.
The partnership also gave BorgWarner rights to FinDreams battery’s intellectual property involving battery pack layout and manufacturing process.
“We believe FinDreams Battery is right for BorgWarner in this area, with its 20-plus years of experience and success in LFP batteries for the mobility sector across China and Europe.”
BorgWarner CEO Frédéric Lissalde
BYD’s presence in the LFP battery industry
Apart from leading the Chinese electric vehicle industry, China Automotive Battery Industry Alliance’s data revealed that BYD also led the global LFP battery market with a whopping 41% share through November 2023. CATL trailed behind BYD with a 33.9% market share in the same period.
BYD leverages its cutting-edge Blade Battery in building high-tech yet affordable electric vehicle models. Its LFP batteries significantly aided the Chinese automaker in beating Tesla in the global market in the fourth quarter of 2023.
“At the key timing of complicated geopolitics and starting point of lithium ion phosphate electrification for overseas commercial vehicles, the overseas localization cooperation with BorgWarner on battery packs using FDB blade cells in the territory takes the advantages of each other’s strengths, provides diversified and flexible options for overseas customers, and also offers extra access to localized battery packs using FDB blade cells for overseas customers.”
Micheal He, President and CEO of FinDreams Battery
About BorgWarner
As mentioned, BorgWarner is an American tier-1 automotive supplier registered on the New York Stock Exchange.
Some of its major customers include American legacy automakers General Motors, Ford, and Stellantis. It currently has a total of eleven production plants to meet the demand for its technologies.
Apart from BYD, it has also partnered with XPeng for the production of the X9 MPV’s electric motors, which will also power the brand’s yet-to-be-revealed B-class sedan. It will reportedly start production in the third quarter of the year.
All that said, this strategic partnership will pave the way for more diverse and flexible battery technology options for global customers. In effect, it can significantly boost the commercial vehicle industry’s shift to electric technology.
