Covestro and BYD form advanced materials partnership

Covestro and BYD have signed a memorandum of understanding establishing a long-term strategic partnership focused on advanced material development.
The companies plan to collaborate across new energy vehicles, power batteries, public transportation, energy storage and emerging technology applications. The agreement covers joint innovation projects, technology co-development and potential strategic investment opportunities.

Covestro will contribute dedicated R&D resources, customized technical support and early access to new material technologies. It will also provide security of supply as products move toward commercial volumes. BYD has agreed to involve Covestro in new projects and technology roadmaps across its businesses.

Covestro said its polyurethane and polycarbonate technologies could support BYD applications including vehicle interiors and exteriors, lighting and electronic components. Its lightweight materials will also be considered for battery and energy storage applications requiring a balance of safety, thermal management and cost efficiency.

“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.”

The agreement expands an existing supplier relationship into collaboration across the value chain. The companies will also work on high-performance polymers combining lightweight construction, structural integrity, durability and thermal and electrical management for next-generation technology platforms

“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 BYD’s head of materials. “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.”

Low-carbon and circular materials will form another part of the partnership. Covestro said this would include products carrying its CQ label, which indicates that they contain at least 25% alternative raw materials.

The companies did not disclose the duration or financial terms of the agreement.

Covestro