Covestro and BYD sign strategic partnership to advance sustainable material innovation

Materials manufacturer Covestro has signed a Memorandum of Understanding (MoU) with BYD, one of the world's leading new energy vehicle (NEV) manufacturers, to establish a long-term strategic partnership focused on developing advanced material solutions for the automotive, energy storage, and next-generation technology sectors.

“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," said 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.”

“Covestro has proven itself as a trusted material innovation partner, and this agreement reflects our confidence in taking that relationship to a new level,” said Head of Materials, BYD. “As we continue to push the boundaries of what is possible in future mobility and beyond, we look forward to co-innovating with Covestro to develop the advanced material solutions that will redefine future industries and accelerate our global ambitions.”

The agreement expands the companies' relationship beyond a traditional supplier-customer model, emphasizing joint innovation, technology co-development, and strategic investment opportunities across BYD's diverse business portfolio. The partnership supports Covestro's "Sustainable Future" strategy by accelerating the development of circular and high-performance material solutions for rapidly growing industries.

Under the collaboration, Covestro will contribute dedicated research and development resources, customized technical support, secure material supply, and early access to new material innovations. In return, BYD will involve Covestro in future projects and technology roadmaps across its businesses.

The partnership will leverage Covestro's expertise in polycarbonate and polyurethane materials to support applications in new energy vehicles, power batteries, energy storage systems, and advanced technologies. These solutions are designed to improve lightweight construction, thermal and electrical management, durability, and safety while enhancing the performance of intelligent mobility and energy systems.

In addition, both companies have committed to promoting low-carbon and circular material solutions. Covestro will supply its CQ (Circular Intelligence) materials, which are manufactured using at least 25% alternative raw materials, to help reduce the environmental footprint of next-generation mobility, energy storage, and intelligent technology applications.

Source: Covestro