Tech giants entering the EV space makes the supply chain tighter
BYD's battery unit Findreams is exploring the collaboration with NIO and Xiaomi Auto, a person familiar with the matter said.
The person also revealed that BYD and NIO decided to cooperate before the Chinese spring festival, with the former supplying its iconic blade battery. Media reported earlier that several NIO employees visited BYD's Pingshan headquarters in Shenzhen in the second half of last year.
Earlier this month, photos circulated on social media of NIO’s founder and CEO William Li accompanying BYD Chairman Wang Chuanfu on a tour of NIO's Hefei plant.
As for when the partnership between the two parties will be made public, an insider close to NIO told an industry media outlet that the cooperation will take novel forms, without disclosing further details.
In the meantime, BYD reportedly has also signed an agreement with Xiaomi Auto.
A source said Xiaomi's first EV would have two versions. The more expensive model adopts an 800-Volt charging platform while the other chooses the 400-Volt edition. CATL and BYD would offer batteries for the two models.
The source also suggested that BYD gave discounts to NIO and Xiaomi to secure the collaborations.
NIO may have a larger appetite for EV batteries as a result of its growing business, especially considering its to-be-unveiled products targeting the middle market. Before the cooperation with BYD, NIO acquired battery cells solely from CATL. Besides that, William Li claimed battery capacity has become a bottleneck for EV production.
Adding suppliers isn't a new option for NEV makers. XPeng has teamed up with CATL, Eve Energy, Calb Tech and Sunwoda Electronic to access its batteries.
As the NEV market expands, the demand for cells is soaring. BYD spun off its battery-making department Findreams in March 2020. The company primarily designs and sells lithium iron phosphate batteries.