BYD more likely to build it’s own plant in Europe than take over Ford’s
Just weeks after reports stating Ford was considering selling its German manufacturing facility to BYD, the Chinese automaker appears more keen on erecting its own EV facility in Europe, according to an executive at the company. Here’s the latest.
BYD Auto is the automotive subsidiary of BYD Company that develops and produces passenger cars, buses, and trucks in China, in addition to rechargeable batteries and energy storage solutions we are seeing implemented more and more in the US.
In the summer of 2022, BYD shared plans to begin selling its EVs outside of China by entering the Japanese market. Ten days later, the company promised EV deliveries in Germany and Sweden before the end of 2022.
BYD EVs will be on sale in countries above, in addition to Norway, Denmark, the Netherlands, France, and Belgium. To support its growing sales footprint overseas, BYD shared its intentions for at least one, if not two, manufacturing facilities in Europe.
These new facilities will also soon support EVs going to the UK, as BYD announced sales in yet another territory. In late January, we reported that Ford was looking to sell its existing production facility in Saarlouis, Germany and had been in talks with BYD as a potential suitor looking for brick and mortar in Europe.
Following recent comments from an executive at BYD however, talks with Ford appear to have fizzled out, leaving the Chinese automaker to mull building its own plant(s) in Europe.
BYD says Ford plant out, but no target country in Europe yet
In a recent interview, BYD executive vice president Stella Li said the automaker is more likely to explore the construction of its own EV plant in Europe rather than acquire Ford’s facility.
We are not focusing on certain companies’ facilities. We are doing feasibility studies to see our plans for the future. Like if we set up our facility in that region, what is the best solution out there?
The best solution appears unclear at this time, as the company states that it has “no target countries to build facilities yet.” What does seem clear, however, is that Ford’s plant is off the table and BYD will seek land in Europe elsewhere.
Ford should be alright, though. According to the original report from the Wall Street Journal, the American automaker was courting 15 potential suitors for the plant Germany. BYD on the other hand, is already erecting a new facility in Thailand to support consumers in Australia, Japan, and Singapore.
The expected facilities in Europe should also help shorten supply chains and support its pending sales and dealer networks along with service centers. We’ve seen fellow Chinese Ev automaker XPeng Motors implement a similar entry strategy in Europe, ensuring it has the brand recognition and physical footprint to support dealers and customer service needs before officially beginning sales.
What still remains unclear is whether BYD plans to enter the US market after Europe, Ford’s home turf. BYD’s potential competitors in Europe are scrambling to cut costs and move production to North America in order for their EVs to once again qualify for federal tax credits under revised terms in the Inflation Reduction Act – a piece of legislature Li says is not “helping the US to be competitive in the EV race or helping US consumers enjoy the best, the most innovative technology.”
Instead, the BYD executive believes China and Europe will lead the global pack when it comes to EV adoption. Time will tell as BYD opens up its order books in Europe, but it will certainly need some manufacturing overseas to support that venture, whether it’s a Ford plant or its own.
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After a month off trying to wrap our heads around all the chaos surrounding EVs, solar, and everything else in Washington, we’re back with the biggest EV news stories of the day from Tesla, Ford, Volvo, and everyone else on today’s hiatus-busting episode of Quick Charge!
It just gets worse and worse for the Tesla true believers – especially those willing to put their money where Elon’s mouth is! One believer is set to lose nearly $50,000 betting on Tesla’s ability to deliver a Robotaxi service by the end of June (didn’t happen), and the controversial CEO’s most recent spat with President Trump had TSLA down nearly 5% in pre-morning trading.
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Hyundai is getting ready to shake things up. A new electric crossover SUV, likely the Hyundai IONIQ 2, is set to debut in the coming months. It will sit below the Kona Electric as Hyundai expands its entry-level EV lineup.
Is Hyundai launching the IONIQ 2 in 2026?
After launching the Inster late last year, Hyundai is already preparing to introduce a new entry-level EV in Europe.
Xavier Martinet, President and CEO of Hyundai Europe, confirmed that the new EV will be revealed “in the next few months.” It will be built in Europe and scheduled to go on sale in mid-2026.
Hyundai’s new electric crossover is expected to be a twin to the Kia EV2, which will likely arrive just ahead of it next year.
It will be underpinned by the same E-GMP platform, which powers all IONIQ and Kia EV models (EV3, EV4, EV5, EV6, and EV9).
Like the Kia EV3, it will likely be available with either a 58.3 kWh or 81.4 kWh battery pack option. The former provides a WLTP range of 267 miles while the latter is rated with up to 372 miles. All trims are powered by a single electric motor at the front, producing 201 hp and 209 lb-ft of torque.
Although it may share the same underpinnings as the EV2, Hyundai’s new entry-level EV will feature an advanced new software and infotainment system.
According to Autocar, the interior will represent a “step change” in terms of usability and features. The new system enables new functions, such as ambient lighting and sounds that adjust depending on the drive mode.
It’s expected to showcase Hyundai’s powerful new Pleos software and infotainment system. As an end-to-end software platform, Pleos connects everything from the infotainment system (Pleos Connect) to the Vehicle Operating System (OS) and the cloud.
Pleos is set to power Hyundai’s upcoming software-defined vehicles (SDVs) with new features like autonomous driving and real-time data analysis.
As an Android-based system, Pleos Connect features a “smartphone-like UI” with new functions including multi-window viewing and an AI voice assistant.
The new electric crossover is expected to start at around €30,000 ($35,400), or slightly less than the Kia EV3, priced from €35,990 ($42,500). It will sit between the Inster and Kona Electric in Hyundai’s lineup.
Hyundai said that it would launch the first EV with its next-gen infotainment system in Q2 2026. Will it be the IONIQ 2? Hyundai is expected to unveil the new entry-level EV at IAA Mobility in September. Stay tuned for more info. We’ll keep you updated with the latest.
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Tesla has unveiled its lithium-iron-phosphate (LFP) battery cell factory in Nevada and claims that it is nearly ready to start production.
Like several other automakers using LFP cells, Tesla relies heavily on Chinese manufacturers for its battery cell supply.
Tesla’s cheapest electric vehicles all utilize LFP cells, and its entire range of energy storage products, Megapacks and Powerwalls, also employ the more affordable LFP cell chemistry from Chinese manufacturers.
This reliance on Chinese manufacturers is less than ideal and particularly complicated for US automakers and battery pack manufacturers like Tesla, amid an ongoing trade war between the US and virtually the entire world, including China.
As of last year, a 25% tariff already applied to battery cells from China, but this increased to more than 80% under Trump before he paused some tariffs on China. It remains unclear where they will end up by the time negotiations are complete and the trade war is resolved, but many expect it to be higher.
Prior to Trump taking power, Tesla had already planned to build a small LFP battery factory in the US to avoid the 25% tariffs.
The automaker had secured older manufacturing equipment from one of its battery cell suppliers, CATL, and planned to deploy it in the US for small-scale production.
Tesla has now released new images of the factory in Nevada and claimed that it is “nearing completion”:
Here are a few images from inside the factory (via Tesla):
Previous reporting stated that Tesla aims to produce about 10 GWh of LFP battery cells per year at the new factory.
The cells are expected to be used in Tesla’s Megapack, produced in the US. Tesla currently has a capacity to produce 40 GWh of Megapacks annually at its factory in California. The company is also working on a new Megapack factory in Texas.
Ford is also developing its own LFP battery cell factory in Michigan, but this facility is significantly larger, with a planned production capacity of 35 GWh.
Electrek’s Take
It’s nice to see this in the US. LFP was a US/Canada invention, with Arumugam Manthiram and John B. Goodenough doing much of the early work, and researchers in Quebec making several contributions to help with commercialization.
But China saw the potential early and invested heavily in volume manufacturing of LFP cells and it now dominates the market.
Tesla is now producing most of its vehicles with LFP cells and all its stationary energy storage products.
It makes sense to invest in your own production. However, Tesla is unlikely to catch up to BYD and CATL, which dominate LFP cell production.
The move will help Tesla avoid tariffs on a small percentage of its Megapacks produced in the US. Ford’s effort is more ambitious.
It’s worth noting that both Ford’s and Tesla’s LFP plants were planned before Trump’s tariffs, which have had limited success in bringing manufacturing back to the US.
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