BYD and materials company Covestro have agreed to build a long-term partnership centred on advanced material applications across several business areas.
The agreement marks a move beyond a conventional buyer-supplier relationship towards wider cooperation across the value chain.
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The companies’ partnership is said to reflect a shared view that future mobility, energy and intelligent systems will depend on closer joint innovation.
Under the memorandum, the companies will expand cooperation in new energy vehicles, battery systems, public transport, energy storage and next-generation technology applications.
The partnership will include joint innovation programmes, technology co-development and potential strategic investment opportunities.
Covestro will dedicate research and development resources to work with BYD on new material technologies, while also providing supply support, early access to material developments and customised technical services.
In return, BYD will involve Covestro earlier in new projects and technology planning across its broader business portfolio.
The collaboration will draw on Covestro’s expertise in polycarbonate and polyurethane materials, as well as its experience in automotive and electronics applications, to support several of BYD’s operating areas.
In vehicles, the companies said the work will cover materials for lighting, interior and exterior components, and electronic systems used in smart mobility.
In batteries and energy storage, the focus will be on lightweight, high-performance materials aimed at improving safety, thermal management and cost efficiency in electric vehicle and residential applications.
BYD head of materials said: “As we continue to push the boundaries of what is possible in future mobility and beyond, we look forward to co-innovating with Covestro to develop the advanced material solutions that will redefine future industries and accelerate our global ambitions.”
Covestro president of engineering plastics Lily Wang said: “BYD’s expanding portfolio represents some of the most exciting and demanding material challenges of our time, and that is exactly where Covestro’s depth of expertise becomes most valuable.”
The agreement also covers polymer materials for more demanding technology uses, where low weight, structural strength, thermal and electrical management, and durability are required.
Alongside product and technology development, the companies plan to work on lower-carbon and circular material options intended to reduce the environmental footprint of future transport, energy and intelligent systems.
