BorgWarner signs agreement for LFP battery packs

BorgWarner Inc. announced it has signed an eight-year strategic relationship agreement with FinDreams Battery, a subsidiary of BYD Company Limited, for the production of lithium iron phosphate (LFP) batteries.

Under the agreement, BorgWarner will be the only non-OEM localized manufacturer (unaffiliated with FinDreams Battery) with rights to localize LFP battery packs for commercial vehicles (class 3 and above) utilizing FinDreams Battery blade cells in Europe, the Americas and select regions of Asia Pacific. In addition to receiving blade cells for manufacturing the battery packs, BorgWarner will receive a license from FinDreams Battery to use its intellectual property related to the battery pack design and manufacturing process. 

Frédéric Lissalde, president and CEO of BorgWarner, stated that LFP chemistry is becoming increasingly important globally due to its cost competitiveness. He said that the company is seeing increased customer demand for batteries with LFP cells.

“We believe FinDreams Battery is right for BorgWarner in this area, with its 20-plus years of experience and success in LFP batteries for the mobility sector across China and Europe,” he commented. “We are excited to work together to develop cutting-edge cell and battery pack technology to further electrify this market segment.”

Michael He, president and CEO of FinDreams Battery, added that overseas localization cooperation with BorgWarner takes advantage of each company’s strengths, provides diversified and flexible options for overseas customers and offers additional access to battery packs using FDB blade cells.

“Devoted to the vision of ‘let people use batteries carefree’, FDB will cooperate with BorgWarner to make joint efforts for the speedy electrification of the overseas commercial vehicle market,” he added.