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According to foreign media, Audi is negotiating with BYD to include it as one of its battery suppliers. BYD told the media that the two sides are indeed in talks, but there are no results yet. A spokesman for Audi said the company was in negotiations with several battery suppliers and had not yet made a decision.

Audi and BYD have also discussed the possibility of deepening cooperation, including a joint venture or a stake in BYD's battery business unit, according to people familiar with the matter to the media, but the progress of the talks is not yet known.

BYD's batteries will be used in the PPE, a high-performance luxury electric vehicle jointly developed by Audi and Porsche. The first new models of the platform are expected to be launched by the end of 2021. Audi and BYD also discussed the possibility of deepening cooperation, including a joint venture or a stake in BYD's battery business unit, but it was unclear how much progress had been made in the talks.

With the launch of many electric models, carmakers are seeking to diversify the supply of key components. Volkswagen Group is launching the largest electric vehicle offensive in the industry to date. By 2028, Volkswagen will launch about 70 new electric models around the world. At that time, Volkswagen plans to deliver 22 million pure electric vehicles worldwide, of which more than half will come from the Chinese market, including Audi, Porsche, Seattle and other brands.

The Q2L e-tron crossover sold by Audi in China uses batteries from Ningde Times. For its part, partnering with a global luxury brand such as Audi will help it compete with its larger competitor, Ningde era. BYD and Ningde Times New Energy Technology are both major manufacturers of power components for electric vehicles in China and are increasingly becoming the latest competitors to Panasonic and LG Chemical.

Currently, BYD is only focused on supplying batteries to its own electric vehicles, and although it has become the largest electric vehicle manufacturer in China, it has missed the opportunity to gain a larger share of the battery market in the electric vehicle market. The value of batteries used in electric cars, electric buses and related energy storage will increase about tenfold to a potential size of $500 billion by 2050, according to investment banks.

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