Covestro: Strategic Partnership with BYD for Material Solutions in Mobility and Energy Storage

Covestro and Chinese technology group BYD have signed a memorandum of understanding establishing a long-term strategic partnership. The collaboration aims to jointly develop and implement advanced material solutions for future-oriented industries such as electric mobility, energy storage, and other high-tech applications.

The agreement significantly expands the existing business relationship between the two companies. Instead of maintaining a traditional supplier-customer relationship, Covestro and BYD intend to cooperate across the entire value chain. Planned activities include joint research and development projects, the co-development of new technologies, and potential strategic investment initiatives.

Advert

The partnership will focus on applications for new energy vehicles, traction batteries, public transportation systems, stationary energy storage, and other advanced technology sectors. Covestro will provide dedicated research and development resources while supporting BYD through long-term material supply, early access to new material innovations, and technical expertise. In return, BYD intends to involve Covestro at an early stage in new development projects and technology roadmaps.

The cooperation builds on Covestro's expertise in polycarbonate and polyurethane solutions. These materials are used in automotive lighting, interior and exterior components, electronic systems, as well as battery and energy storage applications. In addition, the partners plan to develop high-performance polymers for lightweight construction, thermal and electrical management, and structurally demanding applications.

Another key focus of the partnership is the development of low-carbon and circular material solutions. In particular, the companies plan to utilize Covestro's "CQ, Circular Intelligence" product portfolio, which consists of materials containing at least 25% alternative feedstocks. The cooperation forms part of Covestro's "Sustainable Future" strategy, which aims to drive innovation in circular materials and support sustainable growth in future markets.

Founded in 1994, BYD operates in the automotive, electronics, renewable energy, and rail transit sectors. The company employs more than 120,000 people in research and development and holds more than 71,000 patent applications and over 42,000 granted patents. In 2025, BYD generated annual revenue of RMB 800 billion for the first time.

More information: www.covestro.com, www.byd.com

Covestro AG, Leverkusen

back to news list