Global domination strategy of electric vehicle giant BYD: Achieving vertical integration for worldwide supremacy

BYD's Expansion and Sustainable Practices

In the dynamic world of electric vehicles (EVs), BYD is making significant strides. The Chinese automotive giant announced a joint venture with Huayou Cobalt in 2023, aiming to boost upstream control and sustainability by further refining capacity in China.

BYD's international expansion strategy is marked by collaborations with local partners. In Europe, the company partnered with Hedin Mobility and Salvador Caetano. In Hungary, BYD broke ground on its first European passenger vehicle factory in Szeged in 2024.

BYD's fleet of roll-on/roll-off ships, including the world's largest, the BYD Shenzhen, capable of carrying 9,200 vehicles, enables the company to ship vehicles with shorter lead times. This is possible because BYD controls production and manufactures to forecast rather than demand.

Sustainability is at the heart of BYD's operations. The company recovers valuable metals from old battery packs through partnerships with Chinese recycling firms and its own facilities, promoting a circular approach to battery life cycle.

BYD's resource security strategy includes forming long-term partnerships and acquiring stakes in mining companies to secure stable supplies of lithium, nickel, and other key resources for EV battery production. The company collaborated with the Chilean lithium giant SQM from 2022 onwards, and it has also been linked to deals in Africa to access cobalt and manganese.

BYD's commitment to innovation is evident in its subsidiary FinDreams, which operates several facilities dedicated to transforming lithium into lithium carbonate and lithium iron phosphate (LFP). The company also produces the Blade Battery entirely in-house, offering benefits such as independence from major battery suppliers, faster innovation, reduced production costs, and enhanced vehicle safety.

BYD's quality control processes are tighter than the industry norm due to its integrated production model. The company's in-house divisions include FinDreams Powertrain, which manufactures high-efficiency permanent magnet motors and complete e-drive systems, and BYD Semiconductor, which produces chips for battery management systems, motor controllers, and smart cockpit functions.

BYD's latest move in resource security came in 2023 when the company acquired mineral rights for two plots in Brazil's lithium-rich Jequitinhonha Valley, covering 852 hectares in Coronel Murta, Minas Gerais.

BYD's strategic decisions have paid off, as evidenced by its entry into 60 new markets in 2023, including the UK, Germany, Brazil, and Thailand. The company operates several "mega-factories" across China, including in Xi'an, Changsha, and Shenzhen, for full-scale vehicle manufacturing.

In a nutshell, BYD's expansion and sustainable practices are setting a new standard in the EV industry, demonstrating a commitment to innovation, quality, and sustainability.

Global domination strategy of electric vehicle giant BYD: Achieving vertical integration for worldwide supremacy