BYD Taps Chemical Rival Xingfa For Massive 80,000-Ton LFP Battery Material Deal

A powerhouse move in the EV battery world. BYD‘s wholly-owned subsidiary, Qinghai, just inked a massive deal with Hubei Xingshun New Materials, a Xingfa Group company. The numbers? Eighty thousand tons of lithium iron phosphate battery material annually. No small potatoes.

The agreement spans two years with an option to extend for another if both parties nod their heads. Pretty straightforward—BYD pays processing fees, Xingfa churns out the LFP. Win-win. Xingfa gets its production lines humming at full capacity, and BYD secures a vital battery material supply. This agreement strongly aligns with Xingfa Group’s strategy in developing new energy materials. Shareholders on both sides are probably popping champagne.

LFP isn’t just any battery tech. It’s BYD’s golden child. Why? Safety first, folks. These batteries can take serious heat—over 500°C before they throw a tantrum. Compare that to ternary lithium’s measly 300°C threshold. Plus, they’re dirt cheap at 380 yuan per kWh, while ternary options cost a hefty 550 yuan. Math isn’t hard here.

The timing couldn’t be better. LFP installations in China skyrocketed to 493.9 GWh in the first nine months of 2025—up 42.5% from last year. They’ve captured over 80% of China’s EV battery market. Not too shabby. The deal supports the remarkable global battery growth that saw capacity increase from just 0.5 GWh in 2010 to 526 GWh in 2020.

BYD’s clever Blade Battery design also solves LFP’s traditional density problems, boosting space utilization by about 50%. The result? Vehicles cruising past 600 km ranges, with newer models breaking the 1,000 km barrier. Take that, range anxiety.

BYD’s Blade Battery: packing 50% more punch, killing range anxiety, and pushing EVs beyond the 1,000 km frontier.

These batteries last forever too—well, 3,500 cycles, which beats ternary’s 2,000. For public transport vehicles operating 15 years without major fires, that’s essential. BYD maintains LFP as standard across all current and future models, reinforcing their unwavering commitment to this technology.

Bottom line: BYD is doubling down on what works. Safe, cheap, long-lasting batteries that don’t spontaneously combust. And with Xingfa’s production muscle, they’re ensuring the LFP pipeline stays flowing for years to come.