Covestro and BYD have signed a Memorandum of Understanding to establish a long-term strategic partnership focused on developing and applying advanced material solutions across several future-oriented industries. The collaboration will cover new energy vehicles, power batteries, energy storage systems and emerging technology applications. The agreement marks the next stage in the relationship between the two companies. Moving beyond a traditional supplier-customer model, Covestro and BYD aim to collaborate across the entire value chain through joint innovation projects and the integration of new material technologies into future products.
Covestro expands collaboration with BYD
According to Covestro, the partnership supports the company's "Sustainable Future" strategy by advancing material innovations that promote circularity while meeting increasing requirements for performance, sustainability and resource efficiency. “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," says 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.” BYD also sees the agreement as an important step in strengthening the existing relationship and intends to involve Covestro at an early stage in future development projects and technology roadmaps.
Material innovations for electric mobility and energy storage
The partnership covers several application areas. In electric mobility, the companies will develop material solutions for lighting systems, premium interior and exterior components, as well as intelligent electronic applications. For power batteries and stationary energy storage systems, the collaboration focuses on lightweight, high-performance materials that combine safety, thermal management and cost efficiency. In addition, both companies will develop high-performance polymer solutions for next-generation technologies requiring lightweight construction, structural integrity, thermal and electrical management, and long-term durability.
Covestro contributes research and development expertise
As part of the partnership, Covestro will provide dedicated research and development resources to co-develop new material technologies. The company will also ensure reliable material supply, provide early access to new material innovations and offer customized technical support.
The collaboration builds on Covestro's extensive expertise in polycarbonate and polyurethane solutions, which have been widely used in automotive and electronics applications for decades.
Joint innovation across the value chain
The agreement extends beyond product development. Both companies intend to deepen their cooperation in technology development initiatives and explore strategic investment opportunities.
Through closer collaboration, Covestro and BYD aim to accelerate the commercialization of innovative material solutions and support the development of future mobility and energy technologies.
Covestro advances circular and low-carbon materials
Sustainability is another key pillar of the partnership. Covestro and BYD are committed to advancing low-carbon and circular material solutions that reduce the environmental footprint of future mobility, energy and intelligent technology applications. Among these solutions are Covestro's "CQ" (Circular Intelligence) labeled materials, which contain at least 25 percent alternative raw materials and support the transition toward a more circular economy.
