FinDreams' cells will be used in BorgWarner's LFP battery packs for commercial vehicles in Europe, the Americas and selected parts of Asia-Pacific.

(Image credit: FinDreams)

FinDreams reached an agreement on February 8 with US parts giant BorgWarner to supply it with blade battery cells and grant it intellectual property rights, the BYD (OTCMKTS: BYDDF) battery manufacturing unit announced today.

FinDreams and BorgWarner have entered into a strategic partnership to localize the production of battery packs in the non-OEM-affiliated section of overseas commercial vehicles, according to its statement.

FinDreams will also license intellectual property rights related to the production and design of blade battery packs to BorgWarner.

The BYD battery unit plans to become BorgWarner's only supplier of blade battery cells based on lithium iron phosphate (LFP) chemistry, according to the statement.

FinDreams' cells will be used in BorgWarner's LFP battery packs for commercial vehicles in Europe, the Americas (under certain circumstances) and selected parts of the Asia-Pacific region, the statement said.

Following the signing, the two companies discussed the prospect of using LFP batteries in commercial vehicles overseas, according to FinDreams.

FinDreams will work in depth with BorgWarner to help electrify commercial vehicles overseas, it said.

Michigan-based BorgWarner, which has strong ties to China's auto industry, said earlier this month that it had begun manufacturing eMotor rotor and stator for Xpeng (NYSE: XPEV).

The partnership with BorgWarner marks the latest step in expanding BYD's battery business to external customers. BYD's batteries are currently being supplied mainly to its own new energy vehicles (NEVs).

Earlier this month, FAW-FinDreams, a joint venture between FinDreams and China FAW, announced that it had begun production and would be supplying battery packs for FAW's Hongqi-branded models.

FAW-FinDreams has a total planned capacity of 45 GWh, with an initial capacity of 15 GWh, utilizing BYD's signature blade battery technology.

BYD is China's largest NEV company and the second-largest power battery manufacturer after CATL.

In 2023, BYD's installed capacity of power and energy storage batteries were about 150.909 GWh, up 67.98 percent year-on-year, according to data compiled by CnEVPost.

BYD's battery unit FinDreams partners with LG to target US and European markets