Strategic design of an electric vehicle dynasty: How BYD attained worldwide supremacy via integrated manufacturing

In the rapidly evolving world of electric vehicles (EV), BYD is making significant strides, expanding its operations and implementing sustainable practices.

The Chinese automotive giant, known for its fleet of roll-on/roll-off ships, including the world's largest, the BYD Shenzhen, capable of carrying 9,200 vehicles, is making a mark on the global stage.

BYD's footprint in China is extensive, with mega-factories in Xi'an, Changsha, and Shenzhen, producing a full-scale range of vehicles. The company's mission is not limited to China, as it entered 60 new markets in 2023, including the UK, Germany, Brazil, and Thailand.

BYD's commitment to sustainability is evident in its approach to resource management. The company has secured mineral rights for two plots in Brazil's lithium-rich Jequitinhonha Valley and forged long-term partnerships with mining companies to ensure stable supplies of lithium and other key resources.

In line with a circular economy approach, BYD recovers valuable metals from old battery packs through partnerships with Chinese recycling firms and its own facilities. This strategy not only saves costs but also strengthens BYD's Environmental, Social, and Governance (ESG) credentials.

BYD's focus on innovation extends to its vehicle software. The company develops its own driver-assistance systems, infotainment, and battery management software, ensuring a seamless user experience.

Safety is a top priority for BYD. Its Blade Battery, produced entirely in-house by FinDreams Battery, enhances vehicle safety due to its resistance to thermal runaway. FinDreams also operates several facilities dedicated to transforming lithium into lithium carbonate and lithium iron phosphate (LFP).

BYD has invested heavily in refining capacity through its subsidiary FinDreams. In 2024, the company began construction on its first European passenger vehicle factory in Szeged, Hungary.

BYD's commitment to innovation also extends to semiconductors. BYD established BYD Semiconductor in 2004, producing chips for battery management systems, motor controllers, and smart cockpit functions.

BYD's global partnerships are not limited to the automotive industry. The company has been linked to deals in Africa to access cobalt and manganese, and recently announced a joint venture with Huayou Cobalt for further refining capacity in China.

The company also collaborates with local partners such as Hedin Mobility (Europe) and Salvador Caetano (Portugal). In 2022, BYD partnered with Chilean lithium giant SQM, further solidifying its position in the global EV market.

BYD's quality control processes are tighter than industry norms due to having all major systems under one roof. This integrated approach ensures the highest standards of quality and reliability in its vehicles.

In a world where sustainability and innovation are key, BYD is setting the pace in the EV industry, demonstrating that a commitment to both can lead to significant growth and success.

Strategic design of an electric vehicle dynasty: How BYD attained worldwide supremacy via integrated manufacturing