Covestro and BYD have signed a Memorandum of Understanding (MoU) to establish a long-term strategic partnership focused on developing advanced material solutions for new energy vehicles, energy storage systems and next-generation technologies. The collaboration marks a significant step in expanding the relationship between the two companies from a supplier-customer model to a broader innovation partnership aimed at accelerating sustainable industrial development.
Under the agreement, Covestro and BYD will work together on research, product development and technology innovation across multiple sectors, including electric vehicles, power batteries, public transportation, energy storage and emerging technology applications. The partnership will combine Covestro’s expertise in high-performance polymer materials with BYD’s leadership in electric mobility and clean energy technologies.
The two companies said the collaboration is intended to support the growing demand for advanced materials that improve product performance, reduce weight, enhance durability and contribute to greater energy efficiency. As the automotive and energy industries continue to evolve, advanced material technologies are expected to play a critical role in enabling safer, lighter and more sustainable products.
Covestro will contribute dedicated research and development resources, customised engineering support and access to new material technologies. The company will also ensure stable material supply to support BYD’s expanding global operations. In return, BYD will involve Covestro at an early stage of new product development and technology planning across its businesses, enabling closer collaboration on future innovations.
The partnership will focus on developing material solutions for several key applications. In the electric vehicle segment, the companies will work on advanced materials for lighting systems, vehicle interiors and exteriors, and intelligent electronic components that improve both functionality and design. For battery and energy storage systems, the collaboration will target lightweight materials with enhanced thermal management, safety and cost efficiency. The agreement also covers high-performance polymer solutions for next-generation technologies requiring superior structural strength, thermal stability, electrical performance and durability.
Beyond product development, both companies have committed to promoting low-carbon manufacturing and circular economy practices. The collaboration will support the increased use of sustainable materials, including Covestro’s Circular Intelligence (CQ) product portfolio, which incorporates at least 25% alternative raw materials. The initiative aligns with the companies’ efforts to reduce the environmental impact of future mobility and energy solutions.
Commenting on the partnership, Lily Wang, President of Engineering Plastics at Covestro, said advanced material science and close collaboration are essential to driving the next generation of industrial innovation. She noted that BYD’s rapidly expanding business presents significant opportunities to develop new material solutions that enhance performance while supporting sustainability goals.
A representative from BYD’s Materials Division said Covestro has been a trusted innovation partner and that the new agreement strengthens the long-standing relationship between the two companies. The partnership is expected to accelerate the development of advanced material technologies that support BYD’s future mobility and clean energy ambitions.
Covestro is one of the world’s leading manufacturers of polymer materials, supplying industries including mobility, construction, electronics and healthcare. BYD, headquartered in Shenzhen, is a global leader in new energy vehicles with businesses spanning automobiles, electronics, renewable energy and rail transit. Through this partnership, both companies aim to support the transition towards cleaner transportation, sustainable energy systems and advanced industrial technologies.
