BorgWarner announced a strategic agreement with FinDreams Battery, a subsidiary of BYD Limited, to produce lithium iron phosphate (LFP) battery packs for commercial vehicles。

Under the agreement, BYD will supply blade batteries to BorgWarner, which will manufacture batteries in Europe and the Americas.。The term of the agreement is eight years。

BorgWarner will also acquire intellectual property using FinDreams' battery pack design and manufacturing processes。

BorgWarner is a U.S.-listed Tier 1 auto parts supplier listed on the New York Stock Exchange. Its customers include General Motors, Ford and Stellantis。The company has also been very active in China recently。It has 11 manufacturing plants and last week announced the start of production of electric motors for the Xiaopeng Automotive X9 MPV.。They also revealed that the same electric motor will be used in Xiaopeng Motors' new mysterious B-Class sedan, which will start production in the third quarter of 2024。

In addition, on February 8, BorgWarner reached an agreement with a leading Chinese original equipment manufacturer to provide the automaker's plug-in hybrid (PHEV) and electric endurance (EREV) platforms with speed-up functions. Dual reversers。Although BorgWarner did not mention who the Chinese OEM is, according to CarNewsChina, the OEM is Great Wall Motor (GWM).。Great Wall is ready to launch the Poer Hi4-T powered EREV pickup soon, in addition to BEV and PHEV versions。

BorgWarner also supplies electric drive modules (eDM) to Aichi and Ford's Chinese joint venture with JMC。

The eight-year agreement with BYD establishes BorgWarner as the "sole non-OEM manufacturer," independent of FinDreams Battery, with the right to localize LFP battery packs for Class 3 and above commercial vehicles in specific regions in Europe, the Americas and the Asia-Pacific region, according to a press release.。

Non-OEM means BorgWarner is the only automotive supplier with these licenses。However, there could be one automaker with the same license, hinting that more BYD deals could be announced soon.。

BorgWarner President and CEO Frederick Lisard expressed enthusiasm for the cooperation, highlighting the growing global demand for LFP battery packs, which is attributed to its cost competitiveness.。He praised FinDreams Battery's more than 20 years of experience and success in the mobile industry in China and Europe, highlighting the synergy between the two companies in advancing battery technology for commercial vehicles.。

Micheal He, President and CEO of FinDreams Battery, stressed the strategic importance of collaboration in the context of complex geopolitical dynamics and the increasing adoption of LFP electrification by commercial vehicles overseas.。He highlighted the partnership's ability to provide overseas customers with diverse and flexible options, contributing to the rapid electrification of the commercial vehicle market.。

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Many EV makers are now switching to LFP chemistry instead of NMC ternary。LFP is BYD's strength.。These batteries have a lower energy density than NMC, but are cheaper and do not require precious metals such as nickel, manganese or cobalt, the mining process of which is often controversial。Even Tesla is starting to use BYD's LFP batteries on some models, not only in China, but also in Europe, so it's no surprise that BorgWarner has joined the ranks。

While the U.S. is working to develop its EV supply chain independence for Chinese battery makers, it won't be easy.。Ford, for example, announced its LFP battery plant in Michigan, which it touted as a model of self-sufficiency for U.S. electric car makers.。Later, it was revealed that the plant would use CATL's batteries and technology。

In addition, BYD is not waiting for expansion。It is building an electric car factory in Hungary, Europe, and is considering a new electric car factory in Mexico to expand the US market.。We expect more automakers to sign battery agreements with BYD in the next two years and will keep a close eye on the situation.。