Covestro and BYD announced the signing of a Memorandum of Understanding (MoU) to establish a long-term strategic partnership, focusing on developing and applying advanced material solutions across BYD's growing portfolio of industries, including automotive, energy storage, and next-generation technologies.

Covestro and BYD signed an MoU to form long-term strategic partnership on developing advanced material for BYD’s industries.

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 will include joint innovation initiatives, technology co-development and strategic investment opportunities.

Covestro will provide dedicated R&D resources to co-develop new material technologies, 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.

The agreement marks a significant evolution in the two companies’ relationship – moving beyond traditional supply towards collaboration across the value chain, driven by a shared conviction that the future of mobility, energy and intelligent systems demands deep co-

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% alternative raw materials, form a key part of this commitment. 

Covestro world-class PC and PU solutions used in BYD

Covestro’s world-class material expertise in polycarbonate and polyurethane solutions, backed by decades of experience in automotive and electronics application, complements 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.