BYD, one of the top producers of new energy vehicles worldwide, and materials company Covestro announced the signing of a Memorandum of Understanding (MoU) to establish a long-term strategic relationship and partnership to develop and implement advanced materials for BYD’s expanding industries, including energy storage, automotive, and next-generation technology.
The agreement marks a significant evolution in the two companies’ relationship – moving beyond traditional supply towards collaboration across the value chain, driven by a shared conviction that the future of mobility, energy and intelligent systems demands deep co-innovation. For Covestro, the partnership directly supports its “Sustainable Future” strategy by advancing innovations that enable circular solutions and drive growth in industries where material performance is becoming an increasingly important source of competitive advantage.
“At Covestro, we believe in the power of material science and collaboration to drive industry transformation – and this partnership with BYD is a strong example of that,” said Lily Wang, President of Engineering Plastics at Covestro. “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. We look forward to translating that expertise into tangible solutions together with BYD.”
“Covestro has proven itself as a trusted material innovation partner, and this agreement reflects our confidence in taking that relationship to a new level,” said Head of Materials, BYD. “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.”
Under the MoU, the two companies will deepen their collaboration across new energy vehicles, power batteries, public transportation, energy storage, and new technology applications. The partnership will include joint innovation initiatives, technology co-development and strategic investment opportunities.
Covestro will provide dedicated R&D resources to co-develop new material technologies, volume supply security, early access to new material innovations and customized technical support. BYD in turn commits to proactively engaging Covestro in new projects and technology roadmaps across its entire business portfolio.
Covestro’s world-class material expertise in polycarbonate and polyurethane solutions, backed by decades of experience in automotive and electronics application, complements BYD’s key application areas:
- New energy vehicles: Proven material solutions in lighting, premium interior and exterior, and intelligent electronic components, delivering both aesthetic and functional value for smart mobility.
- Power batteries & energy storage: Lightweight, high-performance materials that balance safety, thermal management, and cost efficiency across EV and residential applications.
- Next-generation technologies: High-performance polymer solutions engineered for extreme demands – combining lightweight construction, structural integrity, thermal and electrical management, and durability to enable complex technology platforms of the future.
Beyond product co-development, the two companies are committed to advancing low-carbon and circular material solutions that reduce the environmental footprint of next-generation mobility, energy and intelligent systems. Covestro’s CQ (Circular Intelligence) labeled materials, made with at least 25 percent alternative raw materials, form a key part of this commitment.
BYD was established on November 18, 1994, headquartered in Shenzhen, Guangdong Province. Its business spans four major industries, i.e., automobile, electronics, renewable energy, and rail transit. It is among the Fortune 500 companies, and listed both on Hong Kong and Shenzhen Stock Exchanges. With more than 120,000 R&D engineers, BYD owns the largest R&D team among global automakers. BYD has applied for more than 71 thousand patents, and obtained more than 42 thousand authorized patents worldwide, continuously leading development through technological innovation. In 2025, BYD’s revenue reached CNY 800 billion for the first time, setting a new record. BYD shoulders the responsibilities and duties of the era, firmly embraces the tides of automobile electrification and intelligence, and establishes itself as the leader of new energy vehicles in China and the world, as to pave a road of green innovation and development.
Covestro is one of the world’s leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. Covestro supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from Covestro are also used in sectors such as sports and leisure, telecommunications and health, as well as in the chemical industry itself.
The company is geared completely to the circular economy. In addition, Covestro aims to achieve climate neutrality for its Scope 1 and Scope 2 emissions by 2035, and the Group’s Scope 3 emissions are also set to be climate neutral by 2050. Covestro generated sales of EUR 12.9 billion in fiscal year 2025. At the end of 2025, the company had 46 production sites worldwide and employed approximately 17,600 people (calculated as full-time equivalents).
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