Covestro signs MoU with BYD to develop advanced solutions for NEVs
Last update on Jul 15, 2026
EV and battery manufacturers balancing lightweighting, thermal and electrical management, safety, and cost efficiency across next-generation mobility and energy storage platforms now have a new material development partnership to track. Covestro, a materials manufacturer, and BYD, among the world's largest new energy vehicle (NEV) producers, have signed a Memorandum of Understanding (MoU) to establish a long-term strategic partnership. The agreement covers the development and application of advanced material solutions across BYD's growing portfolio, including automotive, energy storage, and next-generation technologies.
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From traditional supply to co-innovation across the value chain
The agreement moves the two companies' relationship beyond traditional supply and into collaboration across the value chain. Both companies point to a shared view that the future of mobility, energy, and intelligent systems requires deep co-innovation.
For Covestro, the partnership supports its "Sustainable Future" strategy by advancing innovations that enable circular solutions and support growth in industries where material performance is becoming a 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."
Includes innovation initiatives, technology co-development, and strategic investment
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 includes joint innovation initiatives, technology co-development, and strategic investment opportunities.
Covestro will provide dedicated R&D resources to co-develop new material technologies, along with 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 material expertise complementing BYD's application areas
Covestro's material expertise in polycarbonate and polyurethane solutions, built on decades of experience in automotive and electronics applications, matches 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.
You can review Covestro's polycarbonate materials and access technical details directly in the Master Catalog of Plastics. Subscribe to SpecialChem's newsletter to stay current on further material partnership announcements in your sector.
Image credits: Covestro