Recent developments have placed BYD’s battery business at the center of market discussion. A potential supply deal with a major US automaker and a bullish analyst report are prompting investors to reconsider the value of this core segment within the broader company.
Analyst Spotlight on Undervalued Battery Unit
A new research note from investment firm Bernstein has provided significant momentum. The analysts have issued a “Buy” recommendation on BYD’s stock, urging the market to look beyond the company’s well-documented success in electric vehicle sales.
Their analysis centers on the vertically integrated battery division, which they describe as a distinctly undervalued asset. Bernstein’s team argues that the current market valuation fails to adequately reflect the potential of this business. The combination of deep battery expertise and control over its own supply chain is highlighted as a key competitive advantage and a primary growth driver, setting BYD apart from other EV manufacturers.
Ford Negotiations and Geopolitical Considerations
Separately, media reports indicate that Ford Motor Co. is engaged in talks with BYD regarding a potential partnership. The discussions are focused on the supply of batteries for select Ford hybrid models, as the American automaker adjusts its electrification strategy.
While negotiations are ongoing and no agreement is guaranteed, one option under consideration involves importing BYD batteries for Ford plants located outside the United States. The talks have already drawn criticism from some US officials, underscoring the political sensitivity such a deal would entail.
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International Manufacturing and Brand Presence Accelerates
On the expansion front, BYD continues to advance its global manufacturing footprint. The company has confirmed that its new facility in Subang, Indonesia, remains on schedule to commence production in the first quarter of 2026. This plant is a key component of a broader Asian expansion strategy.
Furthermore, the company has this month inaugurated its first Brand Center in Tanzania. This move strengthens BYD’s presence in the African market and underscores its ambition to build a more diversified global profile.
Strategic Context and Forward Look
The potential battery agreement with Ford aligns with a broader industry trend: Western automakers are seeking cost-efficient pathways to scale up production of hybrid and electric vehicles. With its competitive cost position and battery technology, BYD is a logical partner for such alliances, even if political factors may complicate final arrangements.
Bernstein’s report effectively reframes the investment thesis. While many market participants focus intently on vehicle sales volumes, the analysis positions BYD equally as a leading global battery producer. Control over the battery supply chain is identified as a fundamental strategic strength.
Looking ahead, two near-term catalysts are in focus: potential official announcements regarding the Ford discussions and the planned Q1 2026 production launch in Indonesia. Coupled with the recent analyst endorsement, a scenario is emerging where the battery division and international expansion are poised to play an increasingly dominant role in shaping the company’s long-term valuation.
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