A potential battery deal between Ford Motor Company (NYSE:F) and BYD Co. (OTC:BYDDY)(OTC:BYDDF) could significantly alter the electric vehicle sector. An advisor in the Trump administration sees a potential tie-up as giving BYD too much control over the sector.
Ford Motor stock is trading near recent highs. What’s ahead for F stock?
Trump Advisor Peter Navarro Criticizes Ford, BYD Deal Report
BYD passed Tesla Inc (NASDAQ:TSLA) as the top-selling electric vehicle company in 2025. Peter Navarro, an advisor to President Donald Trump, sees things getting worse for Tesla if Ford and BYD team up on batteries.
"So Ford wants to simultaneously prop up a Chinese competitor's supply chain and make it more vulnerable to that same supply chain extortion? What could go wrong here?" Navarro tweeted
Navarro currently serves as the Senior Counselor for Trade and Manufacturing under Trump.
"Did Ford forget the rare earth extortion already? BYD is the latest predatory pricing kind on the block. Aim is to control global EV production – Tesla will be a footnote if this keeps up."
The comments from Navarro follow a Wall Street Journal report that Ford is in talks with BYD on a potential battery partnership. The deal would see Ford buy batteries from BYD for some of its hybrid vehicles.
Ford recently announced it was ending production of some electric vehicles and focusing more on hybrid vehicles. A battery deal with BYD could help the legacy automaker secure battery supply as it expands its hybrid vehicle offerings in the United States.
China EV Dominance Concerns
The potential tie-up between Ford and BYD raises concerns that Chinese automakers are hurting the global EV ambitions of Tesla and other automotive companies that can't compete with BYD and others on price.
Tariffs and software restrictions have largely kept Chinese automakers out of the U.S. automotive market, including the electric vehicle market.
The criticism by a Trump advisor against Ford comes after the automaker recently hosted Trump. Ford CEO Jim Farley said Trump has been "great to work with."
While Farley praised the Trump administration, he expressed concerns about the rising dominance of Chinese automakers.
Farley said he was concerned that Trump previously suggested letting Chinese automakers into the U.S. market. The Ford CEO said China is expanding in Europe and quickly gaining market share, especially among electric vehicles.
While a deal may never be reached between Ford and BYD, the timing is interesting given Farley's recent comments. The criticism from Navarro could lead Trump to make comments on a potential tie-up and encourage Ford not to go through with its plans.
Image: © Brianna Paciorka/News Sentinel via Imagn
