Tesla Rival BYD Accelerates European Battery Plant Expansion Amid Surging EV Production

BYD's European power play hits overdrive as the Tesla challenger maps aggressive battery factory requirements across the continent.

Electrification Domination

The Chinese EV giant isn't just dipping toes in European waters—it's building infrastructure moats. With production volumes screaming past previous thresholds, BYD's supply chain demands now dictate factory specifications that'll reshape regional manufacturing landscapes.

Battery Arms Race Escalates

Forget gradual expansion—this is vertical integration warfare. BYD's blueprint calls for gigawatt-scale facilities positioned to undercut legacy automakers still figuring out their charging cables. The move signals deeper commoditization of battery tech while traditional players scramble for partnerships.

Wall Street's still pricing auto stocks like it's 2014—meanwhile the real transportation revolution is getting built by manufacturers who actually understand electrons don't need quarterly earnings calls to move.

BYD lays out the options for its next big move

Alfredo said the company hasn’t decided what comes next. It’s weighing two options: a third car plant or its first battery facility in the region. Either way, BYD is not slowing down. “It does not make sense to invest in car assembly but bring batteries from China,” he told the audience in Milan.

“Several factors come into play when choosing a new location,” Alfredo said, pointing to things like energy prices. “Energy cost is objectively one of the most important competitiveness factors,” he added, since both types of factories use a TON of electricity.

Right now, the focus is on getting Hungary’s plant running at full speed. But BYD is already talking to governments across Europe about where it might set up its next base. The company says it wants all the EVs it sells in Europe to be built in Europe by 2027.

That goal is meant to help the company avoid EU import tariffs. And for now, plug-in hybrids will likely dominate sales, according to Stella, the company’s EVP. Fully electric models are still part of the plan, but BYD sees hybrids as the near-term money maker.

On top of all that, Alfredo had something to say about Warren Buffett. Last month, Buffett’s company, Berkshire Hathaway, finished selling its full stake in BYD after 17 years. Some thought that MOVE meant he was losing trust in the company.

Alfredo wasn’t having it. “Buffett made a profit of 20 times the capital he invested. He did very well to do what he did,” he said. “We’ve been extremely glad to have had Buffett, but the fact that he monetised his position is exactly what Berkshire Hathaway does for a living: buying, earning and selling.”

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